Technology-focused hedge funds experienced their worst month on record in July, losing 10.2% of their value, according to JPMorgan. Leopold Aschenbrenner’s Situational Awareness fund alone sustained $35 billion in losses during the tech sell-off. Multi-strategy hedge funds lost 2.3%, marking their fourth-worst performance ever, behind the 2020 pandemic, the 2008 financial crisis and the 2000 dot-com bubble. This may limit hedge funds’ capacity to leverage up and sustain the current rally, putting the burden on retail investors. Ken Griffin’s Citadel reportedly acquired many of Situational Awareness’ assets at a discount while posting strong gains itself in July.
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