Citrini: If the "25-Year-Old AI Stock Market Wizard" Completes Fundraising and Unwinds Hedge, New Funds Could Drive AI Stocks to Bottom

BlockBeats News, July 30th, Citrini stated that the initial investors of the 25-year-old AI stock god Leopold Aschenbrenner's AI-themed hedge fund Situational Awareness did not invest in the fund just because they were bullish on AI, but because they recognized Leopold Aschenbrenner's assessment of the AI development path and the fund's strategy of concentrating on long high-beta AI targets. Since its establishment in 2024, the fund has surged by about 2200% at one point, but recently experienced a significant retracement due to the fall of related stocks.

He believes that such highly AI-faithful investors are unlikely to turn bearish on AI just because SK Hynix's stock price was halved within 6 weeks. Even if an investor invested $100 million in the fund at its inception and lost 90% of the assets in July, the position would still be worth about $230 million based on the cumulative 2200% return.

Citrini expects that existing investors may continue to buy on dips, and Situational Awareness is also expected to receive the new capital it is seeking. After the fundraising is completed, the fund may unwind some of its short-term hedges and deploy the new capital into what it calls the "best buying opportunity since April 2025"; the market makers selling the hedge instruments may also simultaneously replenish their related hedge positions.

Leopold is not necessarily in trouble at the moment; instead, he may be driving the AI stocks to form a phase-wise bottom through fundraising, hedge unwinding, and re-entry. However, if these AI-faithful investors with significant unrealized gains refuse to buy more on dips, the related stocks may continue to plummet.