Business & Finance
Hedge Funds Take Big Hit in July After Bruising AI Selloff
Key Points
Hedge Funds Take Big Hit in July After Bruising AI Selloff A spate of well-known hedge funds reported steep losses in July as AI shares tumbled, most notably forcing the highly leveraged Situational Awareness to sell most of its stock portfolio at a deep discount to Ken Griffin’s Citadel. Situational Awareness plunged 67% last month, and the fund offloaded most of its public equities book to meet margin calls.
Hedge Funds Take Big Hit in July After Bruising AI Selloff
A spate of well-known hedge funds reported steep losses in July as AI shares tumbled, most notably forcing the highly leveraged Situational Awareness to sell most of its stock portfolio at a deep discount to Ken Griffin’s Citadel.
Situational Awareness plunged 67% last month, and the fund offloaded most of its public equities book to meet margin calls. Investor concerns over the sustainability of massive corporate spending on AI also weighed on the sector.