The rise and fall of former OpenAI researcher Leopold Aschenbrenner’s hedge fund, Situational Awareness, illustrates the collateral damage that can result from strong investment convictions, according to Aswath Damodaran, widely known as the ‘Dean of Valuation’. He also shared lessons investors can learn from the episode.
Aschenbrenner's fund, Situational Awareness, grew to as much as $45 billion at the beginning of July before suffering significant losses, CNBC reported, citing sources. The fund began seeing heavy losses in recent weeks as its heavyweight AI holdings, including SK Hynix, plunged, while its short positions in software companies such as Adobe moved sharply against it, the report added.
