Situational Awareness down 67% in July in AI stock rout
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Re: Situational Awareness down 67% in July in AI stock rout
#2Yesterdays news. High leverage. Sounds like citadel got a deal.
Re: Situational Awareness down 67% in July in AI stock rout
#3This is everywhere. For reference, former FTXer and OpenAIer raised $225m into a hedge fund structure, went long and short, and reportedly peaked at $40bn of value; leverage bit hard this week and they sold their entire-ish portfolio to Citadel at $10bn. (Which, I imagine was very likely aiming at this outcome in their trading in the last few weeks).
Not reported anywhere -- was additional money raised in to the fund, and what is the LP basis? The story might be: wunderkind 40x+ed his first hedge fund and sold it to Citadel, or it might be: wunderkind raised $20bn and turned it into $10bn fast trading against Citadel.
Inquiring minds want to know!
Re: Situational Awareness down 67% in July in AI stock rout
#4This is everywhere. For reference, former FTXer and OpenAIer raised $225m into a hedge fund structure, went long and short, and reportedly peaked at $40bn of value; leverage bit hard this week and they sold their entire-ish portfolio to Citadel at $10bn. (Which, I imagine was very likely aiming at this outcome in their trading in the last few weeks). Not reported anywhere -- was additional money raised in to the fund…
Say more about how citadel made this happen with their trading?
Re: Situational Awareness down 67% in July in AI stock rout
#5[flagged]
Re: Situational Awareness down 67% in July in AI stock rout
#6Earlier on HN:
Martin Shkreli breaks down the collapse of Situational Awareness - https://news.ycombinator.com/item?id=49119380
Edit: added context
Re: Situational Awareness down 67% in July in AI stock rout
#7Shocking to see a highly levered and highly concentrated fund blow out /s
Re: Situational Awareness down 67% in July in AI stock rout
#8Quite the funny headline. It initially made me think that someone had come up with some sort of quantitative measure of the situational awareness of traders, and was claiming that there was an increase in traders making dumb trades that misread the situation or something.
Ironically, I would describe this selloff as an increase in situational awareness.
Re: Situational Awareness down 67% in July in AI stock rout
#9This is everywhere. For reference, former FTXer and OpenAIer raised $225m into a hedge fund structure, went long and short, and reportedly peaked at $40bn of value; leverage bit hard this week and they sold their entire-ish portfolio to Citadel at $10bn. (Which, I imagine was very likely aiming at this outcome in their trading in the last few weeks). Not reported anywhere -- was additional money raised in to the fund…
Say more about how citadel made this happen with their trading?
Firms like citadel will run crowding analytics, who owns what, at what leverage and rough margin trigger points. Over simplifying but they could be shorting the longs and going long on the shorts. Everyone generally knew situational was heavily levered.
Re: Situational Awareness down 67% in July in AI stock rout
#10>Even including July's losses, the fund remains up about 80% on the year
Spectacular blowup and a lesson on leverage, but let's not miss this line.