Symbolic imageJane Street books about $15bn loss after Situational Awareness slump
The Wall Street Journal reports that Jane Street lost about $15 billion after trouble at the AI fund Situational Awareness. Its assets fell by more than two thirds within a single month.
The Journal's account so far consists of the headline figure alone, with no breakdown of how the position was built or when the loss was booked. The South China Morning Post traces the drawdown at Leopold Aschenbrenner's US hedge fund to roughly 50 days of market turmoil, in which technology stocks gave back the sharp gains they had made earlier in the year. Neither outlet describes how the positions of the two firms were linked.
Losses reach first-time managers in China
The South China Morning Post reports that the two debut portfolios of Yuan Zeqiang at Caitong Fund Management fell 36 and 33 per cent between his appointment on Thursday, 11 June, and 30 July. They carried a combined 7.28 billion yuan (US$1.08 billion) at the end of the second quarter, an unusually large mandate for a first-time manager, and their heavy technology weighting drove the decline.
Other opinions
The Wall Street Journal builds the day around the $15 billion figure at Jane Street; the South China Morning Post, in Hong Kong, tells the same sell-off through first-time Chinese fund managers and does not cite that figure.