The AI trade blew up its own poster child last month, and thousands of people decided to keep betting on him. More than 5,000 retail investors are still mirroring Leopold Aschenbrenner’s stock portfolio, Business Insider reported, even after his hedge fund nearly imploded.
They do it through Autopilot, an app that builds portfolios from the disclosed holdings of well-known investors and politicians. About $32m flowed into its Aschenbrenner strategy between the fund’s March launch and early last week, chief executive Brian Schardt told Business Insider.
When the trouble broke, Autopilot let users stay or leave. Between $3m and $5m walked out. About $28m, held by more than 5,000 people, stayed.
Why the copycats did better
The gap comes down to one thing: leverage, or the lack of it. Autopilot investors do not borrow, short, or trade derivatives. They just mirror disclosed holdings and update when new filings appear. “Ours is not leveraged, which means we don’t take the same risk that he took, which is better,” said Schardt. Unleveraged, the copy falls less in a rout and rises less in a rally. It is up 53.4% since March.
