Update (1130ET): The Wall Street Journal reports that Situational Awareness, the highflying artificial-intelligence-focused hedge-fund firm, sold the bulk of its stock portfolio to Ken Griffin's investment firm Citadel after suffering deep losses, according to people familiar with the matter.
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Update (1000ET): Situational Awareness has exited all of their public investments, CNBC’s David Faber reports on air, citing people familiar with the situation.
Faber reports that the liquidation was done “through one enormous trade."
Roughly two-thirds of the assets under management at Situational Awareness were public equities, both that he owned on the long side and that he was shorting, Faber says.
That could help explain the panic bid in Nasdaq this morning, as investors may believe the overhang from this unwind is over...
...do you really think that Leopold was the only 'smartest man in the room' that was using TRS to massively lever into momentum?
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In 2020/2021, one fund almost single-handedly used massive amounts of leverage to drive several big
