Concentration. Leverage. Volatility.

How Situational Awareness went from +439% after fees to near permanent capital impairment in five weeks

At the end of June, Situational Awareness was up approximately 439% after fees for the year. In July, it lost 67%. Fund sold most of its public-equity portfolio to Citadel, closed its short positions and removed all leverage and portfolio financing. Gains before July had been so large that it was still up approximately 80% for the year.

When I read Leopo…