The University of Virginia in Charlottesville, Virginia was among the few institutional investors caught in the collapse of AI-focused hedge fund Situational Awareness, which lost more than two-thirds of its $45 billion in assets in July. The university's investing chief, Robert Durden, had backed the fund's 24-year-old founder, Leopold Aschenbrenner, last year in a bet that few peers would touch. Most investors who suffered losses were wealthy individuals and tech founders.

The fund's dramatic decline marks a tumultuous end to what had been a record year for the strategy before the July meltdown.