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AI Infrastructure Bets Collapse for Young Fund Manager
21 Aug
Summary
- Fund manager Aschenbrenner launched a new fund at 25 years old.
- The fund concentrated holdings in AI infrastructure companies.
- Key positions like Sandisk and Micron saw sharp declines in July.
A new fund manager, aged 25, experienced substantial losses last month after concentrating its investments in companies tied to AI infrastructure. The fund's strategy focused on sectors like memory chip manufacturing, data center operations, and power provision, while simultaneously betting against software companies anticipated to be disrupted by AI.
This approach proved costly as key holdings such as Sandisk and Micron Technology saw dramatic value drops. Sandisk stock plummeted by nearly 47% in July, and Micron's stock decreased by approximately 29% during the same period. These two positions alone constituted over 56% of the fund's disclosed U.S. holdings at the close of June.
Additional concentrated positions in Bloom Energy, Taiwan Semiconductor Manufacturing, and Nebius Group also suffered significant declines in July. The firm managing these assets, Citadel, which oversees approximately $77 billion, declined to comment beyond a prior statement.
