Examining the fall of Leopold Aschenbrenner and Situational Awareness
The new hedge fund Situational Awareness (“situational”) created by 24-year-old boy wonder Leopold Aschenbrenner managed to barely dodge a total collapse by working out a last-minute deal with Citadel. Situational managed to lose $30 billion in a matter of weeks. Situational had ballooned up to $45 billion in assets under management, more realistically $100 billion with the leverage piled on. This hedge fund almost collapsed because they never bothered to learn the lessons from Long Term Capital Management and multiple other examples of how concentration and leverage can kill you in the stock…
The skinny
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