The problem wasn't just a decline in the stocks - obviously you expect a rocky ride in stocks that are up manyfold in a short period of the time, and Aschenbrenner certainly seems to have had the conviction not to sell early.
The problem was leverage - the decline in these stocks seems to have resulted in margin calls that he could not meet, resulting in forced selling. There was a very brief story that he was looking to raise additional funds, but within 24 hours he had sold much of it to Citadel instead, and for time being now holds an entirely unleveraged stock-only portfolio.
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The problem wasn't just a decline in the stocks - obviously you expect a rocky ride in stocks that are up manyfold in a short period of the time, and Aschenbrenner certainly seems to have had the conviction not to sell early.
The problem was leverage - the decline in these stocks seems to have resulted in margin calls that he could not meet, resulting in forced selling. There was a very brief story that he was looking to raise additional funds, but within 24 hours he had sold much of it to Citadel instead, and for time being now holds an entirely unleveraged stock-only portfolio.
https://www.businessinsider.com/leopold-aschenbrenners-lette...