Situational Awareness hedge fund dumps entire public stock portfolio in margin-fueled fire sale

One of the most talked-about hedge funds in AI investing just hit the eject button on every single public stock it owned. Situational Awareness LP, the fund run by former OpenAI researcher Leopold Aschenbrenner, sold its entire public equities portfolio before Thursday’s trading session, reportedly offloading everything to a single buyer. The reason? Margin pressure. When you’re running leverage reportedly as high as 4x, a bad week doesn’t just sting. It breaks things. From 439% gains to full liquidation Through June 2026, the fund had posted an approximate 439% net gain since inception. Some snapshots showed year-to-date returns north of 147%. The fund had grown from roughly $225 million in assets under management at its late 2024 launch to somewhere between $20 billion and $24 billion by mid-2026. Backers included Patrick and John Collison, the brothers behind Stripe, along with quantitative trading giant Jane Street. The liquidation happened on or around July 30, with the fund’s entire public portfolio reportedly going to a single buyer. What was in the portfolio Situational Awareness LP’s strategy centered on AI infrastructure and data-center proxies. Among the fund’s holdings ...