Hedge fund blowups and credit stress in AI financing
Walleye is returning capital and Engineers Gate is cutting its equities team. A $500M data center loan dump and Leopold Aschenbrenner and Lone Pine rumors add to the stress, with Tuttle filing AI-debt CDS ETFs.
What we know
Walleye Capital is returning capital after its worst month since March 2020, and Engineers Gate is cutting most of its Synthesis equities team. A mystery seller is auctioning about $500M of data center loans, and Tuttle filed CDS ETFs to bet against AI debt. Social media rumors that Leopold Aschenbrenner's fund blew up and that Lone Pine collapsed are unverified. An account on X defends Leopold's thesis whatever happens to the fund.
How the story developed
Walleye is returning capital and Engineers Gate is cutting its equities team. A $500M data center loan dump and Leopold Aschenbrenner and Lone Pine rumors add to the stress, with Tuttle filing AI-debt CDS ETFs.
Reports say Leopold Aschenbrenner's Situational Awareness fund has blown up on semiconductor positions, alongside rumors about Walleye Capital. These are blamed for forced selling.
Leopold Aschenbrenner's Situational Awareness fund has reportedly blown up, and multi-manager equity pods are closing as liquidations spread.
Reports of Walleye returning capital and Situational Awareness being liquidated amplified the deleveraging narrative. UBS says funds are capitulating.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.