Michael Dempsey, managing partner at the New York-based investment firm Compound, said in a long post on X that Situational Awareness’s “prescience was incredibly impressive and likely should still be funded and respected.”
“That said, anyone who has experience in public markets could somewhat easily see this was One Big Trade and so probably there should have been way better views on risk besides buying index-level puts,” he added, outlining several ways he thought the hedge fund may have mismanaged its risk.
“We shouldn’t grave dance but should instead internalize some of the learnings here and appreciate someone who basically called their shot and executed on it but (thus far) didn’t land the plane.”
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