Leopold Aschenbrenner<\/p>\n
Photo: Josh Edelson<\/p>\n
The Securities and Exchange Commission has reportedly subpoenaed several major Wall Street lenders to glean more information about their role in the near-collapse of AI-focused hedge fund Situational Awareness.<\/p>\n
Regulators are seeking insights into Situational Awareness’s trades, use of leverage and communications with the investment banks, which include Goldman Sachs<\/a>, JP Morgan<\/a>, Citigroup<\/a> and Bank of America<\/a>, according to Reuters, citing a source familiar with the matter. <\/p>\n Situational Awareness plunged<\/a> from about $45 billion to around $10 billion in late July after it was hammered in last month’s tech sell-off.<\/p>\n The hedge fund, led by former OpenAI researcher Leopold Aschenbrenner<\/a>, was forced to unwind much of its publicly listed portfolio of large, concentrated, levered positions \u2014 which included SK Hynix<\/a> and CoreWeave<\/a> \u2014 after losses sparked several margin calls among its prime brokers.<\/p>\n Citadel, Ken Griffin<\/a>‘s giant multi-strategy hedge fund, stepped in to buy the positions at a discount, understood to be around 10%. Griffin said in an investor letter Friday that Citadel has since offloaded about 80% of the risk associated with the Situational Awareness portfolio. SK Hynix and CoreWeave have since rallied.<\/p>\n Goldman Sachs, JP Morgan and Citigroup declined to comment on the matter. CNBC has also contacted Bank of America for comment. <\/p>\n