WSJ: Leopold's hedge fund lost 67% in July due to high leverage on AI bets
rohanpaul_ai · x · 2026-08-26
The Wall Street Journal reports on the collapse of Leopold Aschenbrenner's hedge fund, "Situational Awareness." The fund, which managed $45B based on an early AI investment thesis, lost 67% in July. Its downfall was driven by extreme leverage (borrowing $3 for every $1 of capital), which left it unable to weather a reversal in AI-linked stocks. Most of its public portfolio was surrendered to Citadel.
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