When Leverage Goes Rogue: The Aschenbrenner Case Study The recent forced sale of Leopold Aschenbrenner's AI Fund has sent shockwaves through the investment community, raising important questions about the perils of leverage and concentration.
The fund's decision to sell its entire public equity portfolio to Citadel after severe July losses and margin pressure has left many wondering if Micron and SanDisk were indeed wrong bets – or simply victims of their own hubris.
At first glance, Aschenbrenner's thesis on AI infrastructure stocks seemed promising.