**[Citrini: If the "25-Year-Old AI Stock Prodigy" Completes Fundraising and Unwinds Hedges, New Capital Could Drive AI Stocks to Bottom Out]** BlockBeats News, July 30: Citrini published an article stating that the investors in the AI-themed hedge fund *Situational Awareness*, led by 25-year-old AI stock prodigy Leopold Aschenbrenner, initially invested in the fund not solely because of optimism about AI, but because they recognized Leopold Aschenbrenner's judgment on the trajectory of AI development and the fund's strategy of focusing on long positions in high-beta AI stocks. Since its inception in 2024, the fund had surged approximately 2200% at one point, but recently experienced a significant pullback due to declines in related stocks. Citrini believes that this type of investor, who has strong faith in AI, is unlikely to turn bearish on AI simply because SK Hynix's stock price halved within six weeks. Even if an investor had invested $100 million at the fund's inception and lost 90% of their assets in July, their holdings would still be worth approximately $230 million based on the cumulative 2200% return. Citrini predicts that existing investors may continue to buy the dip, and *Situational Awareness* is likely to secure the new funding it is seeking. Once fundraising is completed, the fund may unwind some short-term hedges and allocate the new capital to what it describes as "the best buying opportunity since April 2025." Market makers selling hedging tools may also simultaneously cover related hedge positions. Leopold may not currently be in a difficult position; instead, he could potentially drive AI stocks to form a temporary bottom through fundraising, unwinding hedges, and reinvesting. However, if these AI-faithful investors, who still hold substantial unrealized gains, refuse to add to their positions during the dip, related stocks could continue to experience significant declines. [Original Link]