Leopold Aschenbrenner’s AI Fund Sold Micron and SanDisk Positions Amid Margin Pressure
Leopold Aschenbrenner's Situational Awareness fund, heavily concentrated in memory stocks like Sandisk (NASDAQ:SNDK) and Micron Technology (NASDAQ:MU), reportedly sold its public-equity portfolio to Citadel after suffering significant losses in July. The Q2 Form 13F filing showed that these two companies made up more than half of the U.S. equity book, but subsequent forced selling highlighted structural issues with leverage and concentration risk. Sandisk's bull case is driven by AI storage demand, evidenced by a 437% year-over-year growth in data-center revenue to $2.98 billion. However, its bear case includes cyclicality and price competition. Micron faces similar dynamics: strong near-term supply constraints support the bullish view, but capital intensity and export controls pose risks. The fund's collapse underscores how leverage can amplify losses even when long-term investment theses remain intact. Other hedge funds increased their stakes in both companies during Q2, suggesting broader confidence despite Aschenbrenner’s misstep.
Topics: AI infrastructure forced selling leveraged investing memory stocks