"AI Stock God Can't Protect Itself": Leopold Seeks Financing as Serenity Has Already Retraced 50%
BlockBeats News, July 30 — Recently, AI trading has faced a sharp cooling, with high-beta assets coming under collective pressure from U.S. stocks to Asian tech stocks. The Nasdaq 100 has noticeably pulled back from its high, with double-digit declines seen across multiple AI infrastructure, cloud computing, power, and semiconductor chain stocks. The Korean KOSPI has amplified this wave of sell-offs, with the index retreating nearly 40% from its mid-June high, and intraday declines at one point approaching 44%. The previously popular AI computing power chain is undergoing rapid deleveraging and valuation re-evaluation.
Under these circumstances, the once celebrated “stock gods” have not managed to protect themselves during the downturn. According to the Financial Times, Situational Awareness, an AI-themed hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, is seeking new capital injections. After a significant correction in AI-related stocks, this fund—known for its high-concentration bets on the AI industry chain—has suffered notable losses, and is replenishing capital through investor communications and potential asset sales.
This fundraising quickly became a symbolic event in the wake of the decline in AI trading. Over the past year, the market was willing to pay high valuations for computing power, chips, power, and cloud infrastructure. As the Korean KOSPI, Nasdaq 100, and multiple AI infrastructure stocks experienced sharp fluctuations, funds began to reassess the return cycle, leverage risk, and portfolio crowding within the AI industry chain.
Similar drawdowns have also occurred with Serenity, a familiar “white-haired stock god” in the Chinese investment community. Serenity is an anonymous trader active on the X platform, with no regulatory documents disclosing his full positions, making it impossible for outsiders to verify his actual holdings or portfolio weights. However, he has repeatedly discussed his own AI supply chain framework publicly, claiming his portfolio is concentrated in areas such as storage, photonics, robotics, and upstream semiconductors—seen as “AI bottlenecks.”
Serenity's rise to fame relied on identifying highly elastic targets deep within the industry chain ahead of time. He has singled out directions like SIVE, NBIS, AXTI, and CCXI, covering sub-sectors such as CPO light sources, InP materials, AI cloud, and humanoid robots. When the market favors these sectors, such stocks are far more volatile than mainstream tech stocks, making Serenity legendary on social platforms.
But the backlash from highly elastic assets is equally intense. In mid-July, Serenity claimed on X that after the recent market plunge, his portfolio’s maximum drawdown for the month reached 49.4%. He later explained that, if using 1.4x leverage and with his heavy storage and photonics positions averaging roughly a 35% decline, a drawdown near 49% was not unexpected.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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