Arabic version: سيتادل تخفّض معظم مخاطر محفظة «سيتويشنال أويرنس»

According to Cnbc, Citadel founder Ken Griffin told clients in a Friday letter that the firm had unwound more than 80% of the aggregate risk tied to assets it bought from Leopold Aschenbrenner’s Situational Awareness hedge fund. Griffin said Citadel conducted more than 100 block trades representing more than $4 billion in market value.

Citadel began discussions with Situational Awareness about acquiring some of the fund’s holdings on July 29, Griffin wrote. CNBC reported one day later that Situational Awareness had been forced to sell all of its public stock positions after steep losses, and Citadel was later identified as the buyer of the assets.

“A transaction of this magnitude could not have been completed without the extraordinary cooperation of the trading and prime brokerage teams at the banks serving both firms,” Griffin wrote. He said he was grateful for their effort in the rapid transfer of the portfolio.

Griffin also confirmed that Citadel’s flagship multistrategy Wellington fund returned 5.94% in July, one of its best monthly performances since 2022. Situational Awareness had concentrated positions in the artificial intelligence trade and short positions in some software companies. Stocks including Sandisk and Bloom Energy, in which the fund had large stakes, fell more than 50%, while software names such as Adobe rebounded. The fund faced margin calls and compulsory sales. Since Citadel bought the publicly traded assets, the AI trade has rebounded.