AI Fund Faces 67% Drawdown With Paper Losses Exceeding $5 Billion

Leopold Aschenbrenner's fund suffers a 67% drawdown and $5B in paper losses, forcing asset sales to repay loans just before a market rebound.

Woofun AI reports that Leopold Aschenbrenner’s investment vehicle experienced a 67% drawdown within a single month, resulting in paper losses exceeding $5 billion. Despite expanding the fund 73-fold over two years and being labeled a "genius stock picker," the manager was compelled to liquidate a substantial portion of holdings to service debt obligations.

The forced sales occurred one day prior to a market recovery, during which the fund’s heavily weighted equities posted significant gains.