We Need To Talk About Leopold
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Taking care of your health just got easier, thanks to my sponsor Zocdoc! Start here at: https://zocdoc.com/patrickboyle Last week, 24-year-old Leopold Aschenbrenner — former FTX staffer, ex-OpenAI researcher, and author of the viral 165-page essay "Situational Awareness" — managed to lose roughly two-thirds of his $45 billion hedge fund in a matter of weeks. The margin calls arrived during his wedding weekend. In this video I break down how a trader with no professional experience raised billions from Silicon Valley, why his AI "hedge" wasn't a hedge at all, and how leverage plus a concentrated bet on artificial intelligence stocks turned a great-looking expected return into a catastrophic outcome. Along the way we look at the cultural gap between Silicon Valley and Wall Street, why Ken Griffin's Citadel ended up buying the collapsing portfolio in an overnight fire sale, and the maths of volatility drag — the reason a high expected return can still drag an investor's typical outcome
Tags: finance, trading, patrick boyle, on finance, cfa exam, kings college london, business school, quantitative finance, financial derivatives, personal finance, investing, investments, stock market, corporate finance, leopold aschenbrenner, Situational Awareness
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