Situational Awareness Fund sells public stocks to meet margin recovery requirements

Wall St Engine reported that Situational Awareness Fund triggered margin calls from Goldman Sachs and Morgan Stanley due to a decline in its stock price holdings. Leopold Aschenbrenner has given up selling $3.5 billion worth of Anthropic equity and instead sold a public stock portfolio to Citadel at a discount. Citadel purchased the majority of its shares at a discount of more than 10% below market value, and the Situational Awareness fund met the requirements for recovery to avoid default. The Situational Awareness Fund suffered a net loss of approximately 67% in July, with a net increase of approximately 80% for the year. Leopold Aschenbrenner takes full responsibility for this incident, and the fund has removed bank leverage and plans to continue operating.