Mark LaMonica

Investing Compass · The 24 year old who borrowed billions to bet on AI

• Why Did Situational Awareness Sell to Citadel?

  Situational Awareness sold basically its entire publicly traded portfolio to the hedge fund Citadel at a 10 percent discount after a July selloff in artificial-intelligence shares left the fund down 67 percent.

  Gearing amplified the loss. Many investors now use geared exchange-traded funds, and in countries like South Korea and the US some use single-share geared funds. Mark LaMonica says gearing works both ways and amplifies returns on the upside and on the downside. Situational Awareness needed to unload positions fast, because selling the public shares on the open market would have caused further falls. The fund first considered selling a prize stake in Anthropic, which is supposed to go

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