All articles tagged with #prime brokers
Despite a 67% one-month plunge that shrank Situational Awareness to about $10B in assets, Leopold Aschenbrenner’s AI-focused hedge fund still enjoys support from major prime brokers, including JPMorgan, Goldman Sachs, Bank of America and Citigroup, aided by a $5B private stake in Anthropic and lock-ups; Morgan Stanley plans to onboard, signaling ongoing backing amid reputational risk.
Bank of America CEO Brian Moynihan described the near-collapse of AI-focused hedge fund Situational Awareness as a warning shot about rising valuations and high leverage in markets, signaling prime brokers may tighten exposure to leveraged funds. The fund’s fire sale, aided by Citadel’s backing, underscored risks in AI bets and the broader funding dynamics that can accelerate losses when margins run short.
Crispin Odey, founder of Odey Asset Management, will be leaving the company following allegations of sexual misconduct. The firm's executive committee announced that Odey will no longer have any economic or personal involvement in the partnership. OAM will continue to operate without him, and his partners will control and manage the asset management firm. Three Wall Street firms that are OAM's prime brokers, Goldman Sachs, JPMorgan, and Morgan Stanley, had moved to review or were cutting ties with the business.