Leonid Zadorozhnykh @ProDoser: "A $45 billion hedge fund..."

Finland

A $45 billion hedge fund lost 75% of its value in July. I lost 4.53%. We were holding similar things. Memory, power, data centers. Assets like $MU (Micron Technology, Inc.) and $NBIS (Nebius Group NV) The difference was that they used 4x leverage and were super concentrated in the AI, and I did not. That fund was Situational Awareness, up over 400% in the first half of the year and treated as the smartest money in AI. Probably you heard of it. In July its brokers called the margin and the entire public book went to Citadel in a single trade. That’s the risks of using leverage. Forced selling at that size drags everything down with it, including my positions. So yes, red month. And since January the portfolio is still up 21.62%, against roughly 9% for the $SPX500 More than double the index, with a bad July inside it. Not bad, ah? Nobody wins every month. I am not trying to. My horizon is years, and years may contain ugly stretches. The other pressure came from Asia. Korea’s market had doubled in six months on chip mania, financed with borrowed money, of course... When it turned, margin calls fed more margin calls, domino effect. The companies did not change. The financing did. Then the last week flipped. $MSFT (Microsoft) Azure grew 43%, the fastest since 2022. $AMZN (Amazon.com Inc) AWS added 37%. AI is not just a black hole for cash. It sells. It does generate profits! Careful into August. One good week is not a trend, and Wall Street still thinks in 90 day windows while I think in years. But the forced sellers are mostly gone now. What did July feel like for you? A warning, or a discount? ℹ️ Disclaimer: This post reflects my personal opinions and market observations and is not financial advice. 🤝 You can start copying my trades from just 300$ - check pinned post for more details. ⚠️ Past skyrocketing gains are not a guarantee of future results.

Not investment advice. The author may have financial interests in the mentioned instruments.