Leopold Fund July Loss Hits 67% After Discounted Stock Sale to Citadel

Situational Awareness fund posts 67% July loss, selling public stocks to Citadel at >10% discount to meet margin calls, avoiding default.

Woofun AI reports that Leopold Aschenbrenner’s Situational Awareness fund encountered severe liquidity pressure in July, triggering margin calls from Goldman Sachs and Morgan Stanley. Facing a cycle of price declines and forced selling, the fund initially negotiated to sell $3.5 billion in Anthropic equity but reversed course on July 30. Instead, it sold its public stock portfolio to Citadel at a discount exceeding 10% below market value to satisfy margin requirements and prevent default.

The fund disclosed a net loss of approximately 67% for July, though it remains up 80% for the year. Aschenbrenner accepted full responsibility for the performance, stating that the fund has eliminated bank leverage and is adjusting risk controls to continue operations in public markets.