His AI fund saw a 67% drop in just a month, yet thousands continue to replicate his trades.

      Last month, the AI trade experienced a significant event involving its prominent figure, leading thousands to continue betting on him. According to Business Insider, over 5,000 retail investors are still duplicating Leopold Aschenbrenner’s stock portfolio, despite his hedge fund nearly collapsing.

      They utilize Autopilot, an application that constructs portfolios based on the disclosed investments of well-known investors and politicians. Brian Schardt, the CEO, informed Business Insider that approximately $32 million was invested in the Aschenbrenner strategy from the fund’s launch in March until early last week.

      When issues emerged, Autopilot provided users with the choice to remain in or exit. Between $3 million and $5 million was withdrawn, while about $28 million, managed by over 5,000 individuals, remained.

      Why the imitators fared better

      Those replicating Aschenbrenner have seen better performance than he has. His fund, Situational Awareness, lost 67% in July. Margin calls compelled him to sell most of his public investments at a 10% discount to Ken Griffin’s Citadel. Conversely, the Autopilot version saw a smaller decrease, down around 30% in July, and has since rebounded by 35% from last Wednesday’s low.

      The difference can be attributed to one factor: leverage, or the absence of it. Autopilot investors do not engage in borrowing, short-selling, or trading derivatives. They simply mirror disclosed holdings and adjust when new filings are made. Schardt stated, “Ours is not leveraged, which means we don’t take the same risk that he took, which is better.” Being unleveraged, the copy experiences less decline during downturns and rises less during rallies. It has increased by 53.4% since March.

      Still a full-on AI investment

      The portfolio represents a concentrated investment in AI infrastructure, comprising 14 stocks, with around 30% in the neocloud Nebius and roughly 12% each in CoreWeave and Bloom Energy. These companies faced a tough July due to concerns in Asian markets and fears regarding big tech’s spending on AI. When Citadel acquired Aschenbrenner’s portfolio, the same stocks surged, benefiting all who remained invested.

      The copying trend is unlikely to cease anytime soon. Autopilot monitors quarterly 13F filings, allowing followers to maintain their positions through the downturn, with Aschenbrenner’s next disclosure expected by August 14. Autopilot intends to continue mirroring the fund as long as trading continues. Moreover, if Anthropic goes public this year, one of his largest private investments would also become accessible to the copycats.

      Aschenbrenner is not finished either. He has invested $400 million into a Sequoia-backed company since the downturn, and Sequoia's partners indicated to Bloomberg that “he is not going anywhere.” For now, the 5,000 individuals shadowing his trades are also staying put.