Citrini Comments on "AI Stock God Seeking New Funding Support": The Fund's Founding LPs Still Have a 130% Return Rate, Will Likely Buy the Dip, the Fund Will Secure Sufficient Capital and Unwind Hedges to Avoid Liquidation

Odaily Planet Daily News: In response to recent reports that "AI stock god Leopold Aschenbrenner's Situational Awareness Fund is seeking new capital support," well-known investment research firm Citrini officially commented on X platform: "If you are an LP of Situational Awareness, you invested in the fund based on information from its offering memo, such as 'AI is the only thing that matters, and if you recognize this and wish to invest in a vehicle that expresses this view by going all-in long on the most leveraged expression of our most optimistic AI thesis in the stock market, then you invest.' Not just because you're bullish on AI, but because you believe Leopold is one of the few 'hundreds' / knows these 'hundreds' who will bring about the machine god by 2030. And then, over the next two years, this fund did exactly what it promised. And it went up. Probably over 20x, if I recall correctly.

Again, in this scenario, you are the person who read 'Situational Awareness' (that paper) and said: 'Yes, I agree AI is more powerful than nuclear bombs and will turn the world upside down before the end of this decade. And I want to put my investment into the hedge fund version of that thesis.' Now those stocks have fallen, so the fund's assets have also fallen.

Let me ask you—do these LPs look like the type of people who would turn bearish on AI just because SK Hynix dropped 50% in six weeks? The kind who likely view the level of tech optimism akin to 'I'm going long TQQQ' as normal people treat municipal bond fund investments?

Yeah... I wouldn't expect many of them to be calling Mr. Ash Burner to complain right now. Some people don't realize how insane a 2200% gain since inception (2024) really is. To put it in perspective, if you invested $100 million when SALP launched and lost ninety percent (of those gains) in July, your investment would still be worth $230 million today.

I think LPs are very likely to buy the dip. Situational Awareness will get the money they're asking for. And once the capital is in, they will unwind their (likely short-term) hedges because they won't face the risk of being liquidated by their prime broker. This means the market makers who sold them those hedges will have to delta-hedge their unwind on what could be a fairly significant notional exposure. At the same time, they will deploy these funds into what they see as 'the best buying opportunity since April 2025.' I don't think Leopold is in trouble; rather, it's more likely he can raise the capital he needs, meaning it's more probable Leopold triggers a market bottom than drives AI stocks lower.

If there's something I'm missing that would cause this group of AI super-believers—who are likely still significantly profitable on their SALP investment—to decide they'd rather not buy the dip, then yeah, any stock that even smells of AI might head straight to hell. But... (that's not the reality).”