Countdown to Holdings Disclosure: How a Top Fund Navigated the AI Sell-Off

According to information released by Leopold Stock Tracker, the Situational Awareness fund managed by Leopold Aschenbrenner is scheduled to file its Q3 (July 1 - September 30) holdings report on November 16. This upcoming 13F filing is drawing significant attention due to the fund's spectacular first-half performance and the severe mid-year drawdown it experienced.

From Peak to Trough: A Rollercoaster First Half

Looking back at its end-of-Q2 report, the fund's performance was nothing short of remarkable. Its net value skyrocketed by 439% in the first six months of the year. This achievement was built on two key pillars:

  • Concentrated Bets on Memory Chips: Heavy positions in stocks like SanDisk (SNDK) and Micron (MU).
  • Aggressive Use of Leverage: Amplifying returns with approximately 4x leverage.

However, high returns often come with elevated risk, a principle that was harshly validated in July.

The July Storm: AI Stock Plunge Triggers Major Drawdown

As market enthusiasm for artificial intelligence concepts cooled abruptly, related stocks faced a broad sell-off in July. This storm hit the Situational Awareness fund hard, leading to a drawdown of roughly 67% from its peak. Confronted with such extreme volatility, the fund's management took decisive action: it liquidated its related holdings. Reports indicate that a significant portion of these assets were purchased by the prominent hedge fund Citadel.

Market Focus: Did It Start Buying the Dip?

After selling for safety, did the fund begin hunting for new opportunities? Previous market reports suggested the fund may have deployed around $315 million to establish new positions, potentially including:

  • AMD (Advanced Semiconductors)
  • Bloom Energy (BE, Clean Energy)
  • CoreWeave (CRWV, AI Cloud Infrastructure)
  • SanDisk (SNDK, Re-entered)

Whether these rumored moves are accurate, and exactly how its portfolio has evolved, will be confirmed in the 13F report next month. This document is more than just a list of holdings; it will serve as a valuable window into how a sophisticated investor adapts strategy in the face of extreme market turbulence.