AI-focused hedge fund Situational Awareness has reaffirmed its commitment to investing after reporting a 67% decline in July. Founder Leopold Aschenbrenner told investors the firm will continue operating, strengthen its risk framework, and discontinue the use of leverage following one of the most challenging months in its history. 🔑 Key Highlights 📉 67% July Decline: Situational Awareness reported a 67% loss in July following the sharp selloff in AI-related stocks. 💬 Founder Accepts Responsibility: Leopold Aschenbrenner said he takes full responsibility for the recent performance and is focused on learning from the experience to improve the firm's investment process. 🏦 No More Leverage: The hedge fund will stop borrowing from banks to increase its investment exposure, marking a major change in its investment strategy. 📊 Public Equities Remain a Focus: Despite the losses, the fund said it will continue investing in public equities rather than exiting the market. 📈 Still Up for the Year: The firm stated it remains approximately 80% higher year-to-date, despite July's sharp decline. ⚠️ Concentrated AI Bets: The fund had built a concentrated portfolio of AI-related stocks using leverage, making it particularly vulnerable during the recent market correction.