New York-based quantitative trading firm Jane Street posted a record monthly loss of approximately $15 billion in July, its first negative trading month since 2016. The losses stem from exposure to AI-focused hedge fund Situational Awareness, founded by Leopold Aschenbrenner, and misguided bets on Asian equity markets. The firm had invested roughly $2.5 billion in Situational Awareness before the market reversal. Despite the massive hit, year-to-date net trading revenues exceeded $40 billion by mid-August 2026, already surpassing the firm’s entire 2025 annual total of $39.6 billion. Jane Street is now recalibrating its risk exposures across several business lines and working on a debt refinancing strategy.
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