I feel like I’m arguing against the grain here, and it seems to me like there’s a lot of emotion around this topic. I’m not even a defender of AI billionaires. I just posted because I see this type of discussion around SA recently and it’s mistaken. So I’ll just leave this comment, and it goes for the other replies too.

What happened to SA is not what anyone would call “a fund folding”. Normally you’d assume folding means the fund went bankrupt, or closed at a loss.

This fund is not closing and not on a loss. It’s not bankrupt, and apparently it is opening up new positions and continuing to invest in its main theme last I saw it in the news.

It is on a major drawdown from its peak a few months ago, but it’s still up for the year, most of its investors are likely well in the positive. If you make a huge investment and it goes up 5x before trimming its gains and ending up 100%, you’ll be annoyed, you’ll wish you sold at the top, but you’ve still doubled your money.

Getting margin called and closed this way is not the same as going bankrupt.