Story perspectives

Griffin Snaps Up $20B AI-Hit Hedge Fund Assets

8/3/2026

Summary

Story summary

Leopold Aschenbrenner’s hedge fund Situational Awareness fell from $30 billion to $8 billion after AI stocks dropped.
Goldman Sachs demanded repayment, forcing a $20 billion stock sale within 30 hours.
Kenneth Griffin, Citadel founder, bought much of the distressed portfolio at a discount.
Max Kettner, HSBC chief multi-asset strategist, said the slide reflected margin-call sales.
Kettner added that the crisis interrupted his wedding to Anthropic chief of staff.

History

Historical Context

In September 1998 the highly leveraged hedge fund Long-Term Capital Management, founded by former Salomon Brothers trader John Meriwether, lost $4.6 billion as Russian defaults triggered a liquidity crunch. The Federal Reserve Bank of New York convened 14 banks—including Goldman Sachs, Merrill Lynch and UBS—to provide a $3.6 billion rescue, a precedent that later inspired tighter margin rules for hedge funds.

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Story summary

Leopold Aschenbrenner’s hedge fund Situational Awareness fell from $30 billion to $8 billion after AI stocks dropped.
Goldman Sachs demanded repayment, forcing a $20 billion stock sale within 30 hours.
Kenneth Griffin, Citadel founder, bought much of the distressed portfolio at a discount.
Max Kettner, HSBC chief multi-asset strategist, said the slide reflected margin-call sales.
Kettner added that the crisis interrupted his wedding to Anthropic chief of staff.

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