00:00Hama, you and the team doing excellent reporting when it comes to situational awareness.
00:04And I think a lot of people would look at this and say,
00:06okay, this is leverage in the system, and it seems to have come undone.
00:10What exactly happened with situational awareness, and where do we stand now?
00:14Yes, this is a story we've seen time and time again.
00:16Dramatic couple of days, dramatic 24 hours.
00:21And, you know, what happens is, this is what you see what happens when we see these firms
00:25which have huge amounts of leverage, concentrated positions, and volatile stocks.
00:30And situational awareness had four to five times leverage on these assets.
00:34And this is what happens when those see a downward spiral.
00:38They need to meet margin calls.
00:40They need liquidity fast.
00:42They have to find a buyer.
00:43And they were seeking to sell their public stock book as well as their private stock book.
00:48Ultimately, they found a buyer in Ken Griffin's Citadel.
00:51Talk a bit about the level of panic, so much as it existed here within the fund.
00:55So you've got this Wunderkind who studies math at Columbia.
00:58He's the valedictorian, goes on to found this fund, you know, from your reporting and others.
01:02He was looking at Sand Hill Road maybe as a place that might take on some of this,
01:05of what's in the portfolio.
01:07Was there a lot of panic here?
01:09So where was the head of the founder of this firm here as this all happened?
01:13Yes, I mean, they were trying to find any number of buyers.
01:15So they were talking to Millennium, to Jane Streets, to Citadel.
01:20They were in conversations with Green Oaks and Sequoia about the private book.
01:23So when you're looking to offload this degree of assets so speedily, it's not a good sign.
01:30It's problematic.
01:32And so I can imagine there would have been a great deal of concern.
01:36He's now reassuring investors to say, look, we made a mistake.
01:39We're trying to get back on track.
01:42They pulled out your parents getting married this weekend as well.
01:45This weekend, yes.
01:46It's a tough time.
01:47Talking about a stressful week.
01:48Yeah, yeah.
01:48Some of his clients are probably in attendance, though.
01:51So I think he can get some work done.
01:53Busy reception, no doubt.
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