Situational Awareness Hedge Fund Reenters Public Markets After Near Collapse
Leopold Aschenbrenner's hedge fund, Situational Awareness, has recently started buying options in several stocks including Advanced Micro Devices (AMD), Bloom Energy (BE), CoreWeave (CRWV), SK Hynix (SKHY), SanDisk (SNDK), and the Roundhill Memory ETF (DRAM). This activity follows a summer where the fund nearly collapsed due to heavy losses from highly leveraged AI-related investments. The firm had grown to $45 billion in assets by early July but was forced into distressed sales of its holdings, leaving it with around $10 billion after selling positions to Citadel. The fund's aggressive use of up to 400% leverage led to significant losses when key stocks like Sandisk and Micron Technology dropped sharply. Citadel later unwound over 80% of the risk from Situational Awareness' portfolio, executing more than $4 billion in trades. Despite its troubles, Aschenbrenner has continued investing privately and is under SEC investigation for undisclosed reasons.
Tickers: $AMD $BAC $C $CRWV $DRAM $GS $JPM $MU $SKHYV $SNDK