Analysis of AI hedge fund Situational Awareness exiting its entire public equity portfolio with $45B NAV, examining leverage implications and market impact.
Macro & Markets ·
The AI hedge fund Situational Awareness exited its entire public equity portfolio this month with a Net Asset Value of approximately $45 billion as of July 1st. Given the fund's known use of extreme leverage, the actual gross amount of securities unwound likely exceeded $100 billion, depending on leverage ratios between 2x and 4x. Despite the scale of this exit, markets have held up relatively well through the unwinding.