Citadel Sold More Than $4 Billion of Situational Awareness Bets

Ken Griffin's Citadel sold more than $4 billion of stock bets acquired from embattled AI hedge fund Situational Awareness, shedding over 80% of the aggregate risk from the original portfolio through nearly 100 block trades. Griffin said in an investor note Friday that the firm completed the trades working closely with trading partners, after Citadel agreed on July 29 to buy a material portion of Situational Awareness's holdings to strengthen its balance sheet and mitigate tail risk. Citadel's flagship fund, Citadel Wellington, rose 5.94% in July, bringing year-to-date gains to 12.02%.

Bloomberg -- Ken Griffin's Citadel offloaded more than $4 billion of bets that it snagged when the firm bought a stock portfolio from embattled AI hedge fund Situational Awareness. Most Read from Bloomberg - Trump Sends First Haiti Deportation Flight After Ending TPS for 350,000 https://www.bloomberg.com/news/articles/2026-08-20/trump-sends-first-haiti-deportation-flight-after-ending-tps-for-350-000?utm campaign=bn&utm medium=distro&utm source=yahooUS - China Sentences Evergrande's Hui to Life for 'Heinous' Crime https://www.bloomberg.com/news/articles/2026-08-20/china-sentences-evergrande-founder-hui-ka-yan-to-life-in-prison?utm campaign=bn&utm medium=distro&utm source=yahooUS - Bessent Deploys Debt Buybacks in Sign of Concern Over Yield Rise https://www.bloomberg.com/news/articles/2026-08-19/long-dated-treasuries-rally-as-treasury-boosts-bond-buybacks?utm campaign=bn&utm medium=distro&utm source=yahooUS "To date, working closely with our trading partners, we have successfully shed more than 80% of the aggregate risk from the original portfolio," Griffin said in an investor note Friday. "In this effort, we have completed nearly 100 block trades totaling over $4 billion in market value." Citadel struck a deal late last month to buy stocks from Situational Awareness, a hedge fund led by Leopold Aschenbrenner that was facing margin calls. Aschenbrenner's hedge fund was able to stabilize after reaching the deal with Griffin's firm. "On July 29, we entered discussions with Situational Awareness to acquire a material portion of their holdings, a transaction that would strengthen their balance sheet and mitigate the risk of a tail event," Griffin said in the letter. "In a matter of hours, our team analyzed and priced their global portfolio." Citadel's flagship hedge fund, Citadel Wellington, rose 5.94% in July, bringing its year-to-date gains to 12.02%. A Citadel spokesperson declined to comment on the investor letter. Most Read from Bloomberg Businessweek - The Midwest City Keeping the American Dream Alive for First-Time Homebuyers https://www.bloomberg.com/news/articles/2026-08-13/michigan-housing-market-offers-new-opportunities-for-first-time-buyers?utm campaign=bw&utm medium=distro&utm source=yahooUS - The Steamy, Magical and Now Very Lucrative Romantasy Business https://www.bloomberg.com/news/features/2026-08-12/romantasy-book-series-help-revive-interest-in-reading-push-into-tv-and-film?utm campaign=bw&utm medium=distro&utm source=yahooUS ©2026 Bloomberg L.P.