'AI Stock God' Leopold: The fund will continue operations and will not exit the public stock market, lessons will be learned from this loss

BlockBeats News, July 31, according to the *Financial Times*, Leopold Aschenbrenner, founder of the AI hedge fund Situational Awareness, stated in a letter to investors that the fund's assets shrank by 67% in July. He took 'full responsibility' for the events leading to this loss and pledged to ensure the team learns from these 'extremely costly scars.' Situational Awareness was founded in 2024 and, through aggressive bets on the AI boom, once grew its asset scale to over $20 billion. This week, the sell-off in AI stocks severely impacted major fund holdings such as Bloom Energy and SanDisk. Aschenbrenner compared the fund's situation to a 'bank run' and noted that the market engaged in unfavorable trading of stocks associated with the fund. On Wednesday, the fund reached an emergency exit deal with Citadel, selling most of its public stock holdings at a discount. Specific terms of the deal have not been disclosed. Aschenbrenner stated that the fund will continue operations and will not exit the public stock market, but it will no longer borrow from banks to amplify bets. Despite significant losses in July, the fund is still up 80% year-to-date. Aschenbrenner remarked, 'Our fund must always maintain a structure that can withstand a loss and continue to fight.' The investor letter did not disclose the fund's latest assets under management, and many early investors are restricted by lock-up agreements, preventing them from redeeming funds until at least September. [Original Link]