Nvidia (NASDAQ:NVDA) mania is spilling into hedge funds, with new AI focused managers raising billions and posting eye catching gains, The Wall Street Journal reported.
Leopold Aschenbrenner’s Situational Awareness has topped $1.5 billion in assets and returned 47% in the first half, versus 6% for the S&P 500 (SP500). His pitch is simple: buy likely AI winners in semiconductors and infrastructure, hedge with shorts in weaker pockets.
Backers include high profile tech names. The wave is bigger than one fund. Value Aligned Research Advisors launched in March, quickly reached $1 billion and is also running $2 billion across AI strategies. Point72 backed Turion, which now sits above $2 billion.
Crowding is the catch. Many funds cluster in the same names. Vistra (NYSE:VST), a key power supplier to data centers, showed up as a shared favorite as of March. And the same momentum that boosts early returns can cut the other way when AI stocks wobble.
money is following the AI build out, but concentration and volatility make risk control as important as stock picking. Flows and performance will get a fresh read with the next 13F filings and big AI earnings on deck.
This article first appeared on GuruFocus.
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