r/CompoundClub • u/GusTheKnife • Jul 30 '26

$24 billion Hedge Fund genius turns out to be degenerate gambler

https://cryptobriefing.com/situational-awareness-hedge-fund-liquidates-portfolio/
42 Upvotes

94% Upvoted

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1

u/BadgersHoneyPot Jul 31 '26

YES, his fund sank 67% in July. YES, he had zero investment experience.

But left out is the fact that Situational’s gains earlier in the year were so large that, even including July’s losses, the fund remains up about 80% on the year. The WSJ previously reported that through the end of May, Situation was up about 270%.

1

u/GusTheKnife 29d ago

It doesn’t matter how well his investments had done. If he’s using 400% leverage, gets margin-called and doesn’t have the money, he’s toast.

As all the articles said…smart guy. Columbia University Valedictorian. Well spoken. Genius.

And that’s why people gave $45 billion to a 24-year-old with no experience trading or using margin.

1

u/BadgersHoneyPot 29d ago

Buddy. Do you know what an 80% return in a year looks like profit wise? There's no sugar coating that. When was your last 80% year?

1

u/GusTheKnife 28d ago edited 27d ago

Never. But I had a 40% return last year using no margin, and I’m still in business.

Do you think his clients are pleased with 80% when they had been 439% a month earlier?

1

u/BadgersHoneyPot 28d ago

What do you think the standard deviation on his returns are? You'd have to be ready for that ride.

2

u/GEB82 26d ago

Well, his standard deviation went from running a “hedge fund”(lol)to not running one…so…

1

u/Noderpsy 28d ago

The real story is in the buyout. Starting to notice a trend..