I think the collapse of SA is very simple (as long as I'm not wrong about it of course hehe).

SA weren't geniuses, they weren't sophisticated. They just did the same thing everyone else did, all in on semi-conductor, AI and memory positions. They got great returns because 1) everyone got great returns and 2) they were leveraged through their ears. In fact, not only they weren't geniuses, they were pretty bad at risk management, so bad that the first mild drawdown triggered margin calls on their over-leveraged bets and they couldn't cover them.

TLDR: SA didn't have alpha, they just looked good through over-leveraged beta and got caught

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jfrbfbreudh 3 hours ago | parent [-]

They were the alpha. Leopold called the boom in 2025 and returned 200% in 2025.

He unfortunately got caught with his pants down.

	▲	freeone3000 6 minutes ago \| parent \| next [-]
		Shoot, I called the boom in 2020 and returned 700% over the last six years. Where’s my fund? :P
	▲	33 minutes ago \| parent \| prev \| next [-]
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	▲	blitzar 2 hours ago \| parent \| prev \| next [-]
		That was just leveraged beta.
	▲	lz400 3 hours ago \| parent \| prev \| next [-]
		I mean, so many people also went in on the boom, that's why it's a boom. Leopold somehow got it 100% right and _still_ managed to go bust
	▲	wiejee 2 hours ago \| parent \| prev [-]
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