Leopold Aschenbrenner’s newest regulatory submitting exhibits Situational Consciousness loaded up on a bunch of synthetic intelliegence shares simply earlier than they grew to become a few of the market’s largest casualties in July. The hedge fund’s 5 largest disclosed inventory holdings on the finish of June had been Sandisk , Micron Know-how , Bloom Power , Taiwan Semiconductor Manufacturing and Nebius Group , in accordance with a 13F submitting launched Friday. All 5 had been hammered the next month because the AI commerce abruptly reversed, serving to push the fund to the brink and forcing it to unload a lot of its public-equity portfolio to Citadel. Sandisk, the fund’s largest U.S.-listed place at $5.7 billion, plunged virtually 47% in July. Micron, shut behind at $5.6 billion, tumbled practically 29%. Bloom Power slid 32%, whereas Taiwan Semiconductor misplaced 15% and Nebius slumped 31%. The submitting confirmed Aschenbrenner was including aggressively to a number of of the shares that might quickly bear the brunt of the AI selloff. The fund additionally held $745 million of CoreWeave , one other AI infrastructure title caught within the July rout. Situational Consciousness had constructed its technique round one in all Wall Avenue’s hottest trades: proudly owning corporations anticipated to supply the reminiscence chips, information facilities, energy and different infrastructure required for the AI growth, whereas betting in opposition to software program corporations Aschenbrenner considered as susceptible to disruption from AI itself. The technique labored spectacularly for a lot of the fund’s brief historical past. Earlier than July’s decline, Situational Consciousness had generated positive factors of greater than 1,000% since inception, the Wall Avenue Journal reported in June. At its peak earlier this summer season, the fund sat atop roughly $45 billion in belongings. However the sudden reversal in a lot of its largest inventory bets, compounded by losses on the opposite facet of its portfolio and using leverage, rapidly changed into a liquidity crunch. By July 30, after being compelled to dump its leveraged inventory bets — together with hard-hit names akin to SK Hynix and CoreWeave — to Ken Griffin’s Citadel at a reduction, the fund’s holdings had fallen to round $10 billion. The 13F solely captures U.S.-listed lengthy positions held as of June 30 and subsequently would not present a whole image of Situational Consciousness’s exposures or the trades that finally drove its losses.
