AI Hedge Fund Collapses Under Margin Calls
Leopold Aschenbrenner’s AI-focused hedge fund Situational Awareness collapsed after margin calls forced a distressed sale of its public holdings to Ken Griffin’s Citadel, wiping out roughly $35 billion from a peak near $45 billion. Prime brokers Bank of America, Goldman Sachs, and JPMorgan Chase helped meet margin requirements as the fund’s leveraged positions were dumped, with as much as 400% leverage cited. The portfolio included AI infrastructure bets and private stakes like Anthropic, Nebius Group, Sandisk, Micron, and CoreWeave; the fund had posted outsized gains since its 2024 inception but investors warned of trouble, and the crash occurred as founder Leopold Aschenbrenner, 25, was preparing to marry Avital Balwit.
- Leopold Aschenbrenner's AI hedge fund collapses after margin calls Yahoo Finance
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- ‘We let you down this month:' Read Leopold Aschenbrenner's letter to investors after his fund’s meltdown Business Insider
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- His Wedding Guests Were Arriving—Just as His $45 Billion Fund Was Falling Apart wsj.com
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