Situational Awareness Plunges 67% in July, Sells Most Equities to Citadel
Updated
Updated · Bloomberg · Aug 5
Situational Awareness Plunges 67% in July, Sells Most Equities to Citadel
3 articles · Updated · Bloomberg · Aug 5
Summary
Situational Awareness lost 67% in July and sold most of its public-equities portfolio at a deep discount to Citadel to meet margin calls.
AI shares tumbled through the month as investors questioned whether massive corporate spending on AI was sustainable, hitting highly leveraged funds hardest.
A spate of well-known hedge funds also posted steep July losses, making Situational Awareness the clearest sign of how the AI selloff rippled through the sector.
The fire sale followed the fund's near-collapse reported last week, an episode Bank of America CEO Brian Moynihan had already called a warning shot for leveraged markets.