2 weeks ago
Jane Street Loses $15 Billion in First Down Month
Jane Street is a big company that helps people buy and sell stocks and other investments very quickly.
It makes money when it does a lot of trading.
In July, Jane Street lost about 15 billion dollars.
That is a huge amount of money.
It was the first month in about ten years that the company had a really bad month.
One reason is that a special money fund it invested in, called Situational Awareness, made bets on artificial intelligence companies that did not work out.
Jane Street also made some wrong guesses about stocks in Asia.
The company's leaders said July was a bad month and that they would be more careful with their risk-taking.
Even so, Jane Street has still made more money this year than it made in all of last year.
Jane Street posted roughly $15 billion in losses in July, its first monthly slump in about a decade.
Losses were driven by a drawdown at AI-focused hedge fund Situational Awareness and wrong-way bets in Asian equity markets.
The firm still generated more than $40 billion in net trading revenue so far this year, exceeding its full-year 2025 record of $39.6 billion.
Partner Turner Batty said the firm closed a significant portion of its risk in the areas it lost on and reduced risk-taking elsewhere.
Jane Street is issuing $14.6 billion of bonds to refinance debt after Situational Awareness faced margin calls and struck a rescue deal with Citadel.
- Who
- Jane Street, the market-making firm, Turner Batty, a Jane Street partner, and the AI-focused hedge fund Situational Awareness.
- What
- Jane Street posted roughly $15 billion in losses in July, its first monthly slump in about a decade.
- Where
- Equity markets globally, including Asian equity markets.
- When
- July
- Why
- A drawdown at AI-focused hedge fund Situational Awareness, which faced margin calls after AI bets soured, and wrong-way bets in Asian equity markets.
Key facts
- Reported July losses
- Roughly $15 billion
- First monthly decline
- In about a decade
- Year-to-date net trading revenue
- More than $40 billion
- 2025 trading revenue
- $39.6 billion (Wall Street record)
- Planned bond issuance
- $14.6 billion
- Capital stack being refinanced
- $11 billion
- Key loss driver
- AI fund Situational Awareness drawdown
- Bond deal led by
- JPMorgan Chase & Co.
Quotes
Turner Batty
Jane Street partner and internal note author
“"Despite the large year‑to‑date increase in trading capital, the recency of these losses has caused us to locally be more selective about risk."”
livemint.com
“"July was a bad month."”
livemint.com
Sources
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