economy
Situational Awareness filing shows AI bets before forced portfolio sale to Citadel
The hedge fund's five largest disclosed stock holdings at the end of June were Sandisk, Micron Technology, Bloom Energy, Taiwan Semiconductor and Nebius Group.
TL;DR
- Situational Awareness loaded up on AI infrastructure stocks before a major market reversal in July.
- The fund's five largest disclosed holdings at the end of June were Sandisk, Micron Technology, Bloom Energy, Taiwan Semiconductor Manufacturing, and Nebius Group.
- All five of these stocks experienced significant drops in July following the AI trade reversal.
- The fund's strategy focused on companies supporting the AI boom, while betting against AI-vulnerable software companies.
- The fund experienced substantial losses due to the AI selloff, leverage, and other portfolio losses, leading to a liquidity crunch.
- By July 30, the fund was forced to sell leveraged stock positions to Citadel at a discount, reducing its holdings significantly.
- The 13F filing provides an incomplete picture as it only captures U.S.-listed long positions as of June 30.