Situational Awareness’ AI Bets
BackForward
FacebookXLinkedIn
EmailLink
Gift
FacebookXLinkedIn
EmailLink
GiftGift this article
Add us on Google
Contact us:\ Provide news feedback or report an error
Confidential tip?\ Send a tip to our reporters
Site feedback:\ Take our SurveyNew Window
FacebookXLinkedIn
EmailLink
Gift
By Shawna Kwan and Hema Parmar
August 5, 2026 at 5:50 PM EDT
Updated on August 5, 2026 at 7:00 PM EDT
BookmarkSave
Translate
Takeaways by Bloomberg AI Subscribe
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.
Before it's here, it's on the Bloomberg Terminal\ \ Bloomberg Terminal LEARN MORE
More From Bloomberg
\
\
Citadel Jumps 6% After Fire-Sale Situational Awareness Deal 
\
\
Major Hedge Funds Targeted in Wave of Attempted Cyberattacks 
\
\
AI-Focused Altimeter Sinks 11%, Joins Funds Hit by Brutal July 
\
\
Whale Rock Sank 22% as AI Selloff Crippled Hedge Fund Returns 
\
\
Coatue’s Hedge Fund Sinks 8% in Worst Drop in More Than a Year
Top Reads
\
\
AI Is Turning Retail Traders Into DIY Hedge Funds\
\
by Zijia Song and Bernard Goyder 
\
\
AI Is Now Power — and America’s Lead Is Shrinking\
\
by Hal Brands 
\
\
Where to Invest $1 Million: Robots, Banks and Chinese Chips\
\
by Suzanne Woolley 
\
\
AI Is Rewiring South Korea’s Careers, Dating and Culture\
\
by Heesu Lee, Soo-hyang Choi, Yoolim Lee and Sohee Kim
For you
Based on your reading history
Iran Says Agreement on Hormuz Shipping Reached With Oman
Major Hedge Funds Targeted in Wave of Attempted Cyberattacks
Taco Bell Met With Michigan on Parasite Weeks Before Recall
Google AI Veterans Depart During Seismic Leadership Shift
Subscribe now for unlimited access to Bloomberg.com and the Bloomberg app
Global news that uncovers a new tomorrow. Cancel anytime.
Claim This Offer
We've updated our terms
By accepting, you agree to our updated Terms of Service, including the arbitration provision and class action waiver. You understand that we process your information as described in the Privacy Policy, which may include sharing information about your use of Bloomberg.com with third parties. Accepting does not affect your right to opt-out at any time via the Do Not Sell or Share My Personal Information link in the website footer.
Accept
reCAPTCHA
Recaptcha requires verification.
protected by reCAPTCHA
StripeM-Inner
Read Original at Bloomberg.com →