Jul. 31 at 11:27 AM
$NOW $ADBE $MSFT $CRM
I hope all of them burn!
Leopold Aschenbrenner’s hedge fund, Situational Awareness, the biggest issue was not that they were “caught” doing something improper. The fund appears to have suffered a severe drawdown from a combination of high leverage, concentrated AI bets, and short positions that moved against them. Reports indicate the fund was forced to unwind much of its public equity portfolio after heavy losses.
Regarding software stocks specifically, there are reports that Leopold had short positions in software companies he believed AI would commoditize, including Adobe, and those shorts reportedly moved against him as software stocks rallied.
What’s interesting is that earlier in 2026, the fund was also known for major bearish positions against parts of the AI ecosystem, including semiconductor-related names through put options. When the market turned volatile, leverage amplified the losses.
