AI-focused hedge fund Situational Awareness has resumed deploying capital just days after surviving a liquidity crisis that forced it to sell most of its public equity portfolio, according to a report by Bloomberg. The firm has made a further $400m investment into one of its existing private portfolio companies. Last week’s turmoil saw Situational Awareness scramble to raise liquidity as lenders demanded additional collateral against its leveraged public equity positions. In a letter to investors, Aschenbrenner acknowledged the severity of the events and said the experience would reshape the firm’s risk management approach. Aschenbrenner has also begun engaging directly with investors through a series of one-to-one calls aimed at addressing concerns and outlining the firm’s recovery plans.