Leopold's Letter to LPs: AI Fund Plunged 67% in July Amid a 'Bank Run' Dynamic
rohanpaul_ai · x · 2026-08-02
Leopold Aschenbrenner's fund plummeted by 67% in July but remains up 80% year-to-date. In a comprehensive letter to his Limited Partners (LPs), he announced his commitment to continue investing in public equities.
Aschenbrenner admitted that the fund came uncomfortably close to permanent capital impairment. He compared the recent market turmoil to a "bank run," where vulnerability begets more vulnerability. Many AI-related names drew down by half or more, causing the fund's positive long/short spread to reverse violently as positions rapidly moved against them and market liquidity dried up.
Related event: Ex-OpenAI Director's Fund Plunges 67% in July, Remains Up 80% YTD(2 posts)→
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