UVA benefited from early bet on AI hedge fund

The University of Virginia’s long-term investments returned 27% for the 12 months ended June 30, pushing assets managed by the University of Virginia Investment Management Co. to a record $18.8 billion. Roughly half of those assets are held in the university’s endowment.

Those results followed an early stake in Situational Awareness, an AI-focused hedge fund founded by 24-year-old researcher Leopold Aschenbrenner. People familiar with the matter indicate UVA was among a small number of institutional backers; most other investors in the fund were wealthy individuals and technology entrepreneurs.

Situational Awareness reported about 200% returns in 2025 and more than 400% in the first six months of 2026. The fund used leverage, which amplified both gains and losses. In July, a sharp sell-off triggered margin calls and led the firm to liquidate much of its public-equity portfolio.

The gains recorded before the July liquidation contributed to UVIMCO’s reported performance for the fiscal year. UVIMCO does not disclose the size or timing of individual investments or the identities of the roughly 90 external managers it hires. People familiar with the investments indicate UVIMCO made money on its stake in Situational Awareness.

In its most recent tax filing, UVIMCO reported $1.3 billion invested in long-short equity funds as of June 30, 2025. The 27% return for the year compares with a 12.4% gain in the prior fiscal year.

The sequence of large early gains followed by a sudden reversal affected the timing of returns recorded for the fiscal year and contributed to the increase in reported assets.