Issue No. 31Week ending Sunday, August 2, 2026724 episodes · 3,185 write-ups
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The Collapse of Situational Awareness, Ferrari Luce Stays on Track for 2026 | Diet TBPN

With John Coogan, Jordi Hays · Sunday, August 2, 2026

This episode analyzes the rapid collapse of Leopold Auerbach's Situational Awareness hedge fund due to significant losses in AI infrastructure investments, highlighting the role of leverage and broader macroeconomic influences. It also covers the unexpected sales success of Ferrari's new electric vehicle, the Luce, in China despite its polarizing design, and the debate around its strategic impact on the brand.

Key takeaways

  • Ferrari's first all-electric vehicle, the Luce, designed by Jony Ive, has already met its 2026 sales targets, three years ahead of schedule. Read more →
  • Leopold Auerbach's Situational Awareness fund, despite its AI focus, collapsed due to inherent mathematical risk rather than flawed judgment on AI's potential. Read more →

2 articles from this episode

Your Genius Won't Beat This Math on Leverage

Leopold Auerbach's AI fund collapsed not because of bad AI bets, but due to statistical risk and macro forces. Learn why your startup's smartest bets can still fail.

Read article →

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