00:00It's Benzinga, bringing Wall Street to Main Street
00:02Jane Street took a $15 billion hit in July, from its exposure to AI-focused hedge fund situational
00:08awareness and tech stocks affected by the market sell-off, according to Reuters. The trading firm
00:13still generated more than $40 billion in trading revenue year-to-date, surpassing its $39.6 billion
00:19total for all of last year. Situational Awareness sold most of its stock portfolio to Citadel in
00:25July after the AI sell-off triggered margin calls, with Jane Street among the hedge fund's investors.
00:30Jane Street said losses at situational awareness contributed to its first negative month of
00:35revenue since 2016. The firm also lost money on AI-exposed stocks and long positions in non-AI
00:41Asian stocks. Jane Street said its revenue is down roughly 25% from its late June peak.
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