Key Takeaways
- • VARA (Value Aligned Research Advisors), an AI-themed hedge fund, lost 44% in July as a sharp selloff in AI-related stocks hit crowded positions, according to Bloomberg.
- • The loss cut gains for VARA's flagship AI Fund to about 65% year-to-date through July, down from almost 200% through June, per an investor document cited by Bloomberg.
- • The New Jersey-based firm managed about $26.4bn at the end of June, roughly 16 months after launching its hedge fund operations.
- • Regulatory filings showed VARA and Situational Awareness held 15 common stocks in common at the end of March, with overlapping positions making up about 93% of Situational Awareness' disclosed stock portfolio versus roughly 27% for VARA.
Summary
Value Aligned Research Advisors, a hedge fund built around the artificial intelligence investment theme, suffered a 44% loss in July as a sharp selloff in AI-related stocks hit crowded positions across the sector, according to a report by Bloomberg. The report cites an unnamed person familiar with the performance. The decline reduced gains for VARA's flagship AI Fund to about 65% for the year through July, after the strategy had been up almost 200% through June, according to an investor document. VARA reportedly declined to comment on its performance.
The New Jersey-based firm managed about $26.4bn at the end of June, just 16 months after launching its hedge fund operations. The firm was founded by Ben Hoskin and David Field and focuses on companies expected to benefit from the development of transformative AI, including businesses involved in AI infrastructure, data centres and power generation.
VARA's portfolio has significant overlap with that of Situational Awareness, the AI-focused hedge fund founded by Leopold Aschenbrenner. Regulatory filings showed the two managers held 15 common stocks at the end of March, including CoreWeave, Bloom Energy, IREN, Applied Digital, Core Scientific and Riot Platforms. The overlapping positions accounted for about 93% of Situational Awareness' disclosed stock portfolio by value, compared with roughly 27% for VARA, highlighting the concentration risk in the sector's shared holdings.
The New Jersey-based firm managed about $26.4bn at the end of June, just 16 months after launching its hedge fund operations. The firm was founded by Ben Hoskin and David Field and focuses on companies expected to benefit from the development of transformative AI, including businesses involved in AI infrastructure, data centres and power generation.
VARA's portfolio has significant overlap with that of Situational Awareness, the AI-focused hedge fund founded by Leopold Aschenbrenner. Regulatory filings showed the two managers held 15 common stocks at the end of March, including CoreWeave, Bloom Energy, IREN, Applied Digital, Core Scientific and Riot Platforms. The overlapping positions accounted for about 93% of Situational Awareness' disclosed stock portfolio by value, compared with roughly 27% for VARA, highlighting the concentration risk in the sector's shared holdings.
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