AI hedge fund Situational Awareness may have sold its public portfolio, but it still has its Anthropic shares
TL;DR
The AI hedge fund Situational Awareness, founded by a former OpenAI researcher, was forced to unwind its public equity portfolio after leveraged bets on listed stocks fell sharply. The report notes the fund is not out of the game: private positions and other instruments remain available to it. The episode serves as a test of how well an AI-driven investment thesis holds up once leverage is added.
Nauti's Take
What makes this instructive is where the money survived: the leveraged public bets burned, while the illiquid Anthropic stake is what keeps the fund in the game. The risk sits in valuation, because a private stake is worth whatever the next funding round says and cannot be sold quickly.
For anyone seeking AI exposure, this shows cleanly that leverage and timing are more dangerous than the technology itself.
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