Key facts
- Citadel achieved its best-ever month in July with its stock-picking fund up 14.2%.
- The firm's stock-picking fund has a year-to-date gain of 27%.
- Citadel's Tactical Trading fund gained 11.1% in July, also reaching a 27% year-to-date return.
- The firm's flagship Wellington fund gained 5.9% in July and 12% year-to-date.
- Citadel acquired a significant portion of Situational Awareness's public portfolio at a discount.
- Situational Awareness suffered a 67% drawdown due to leveraged positions in AI infrastructure stocks.
Citadel, the $71 billion investment firm founded by Ken Griffin, experienced its most profitable month ever in July, primarily due to the acquisition of a substantial portion of Situational Awareness's public portfolio. The deal, executed at a 10% discount, included holdings in companies like CoreWeave, SK Hynix, and Bloom Energy, which subsequently saw significant price increases.
Citadel's dedicated stock-picking fund surged by 14.2% in July, marking a new record and contributing to a 27% year-to-date gain for the fund. The firm's Tactical Trading fund, which combines quantitative strategies with human stock selection, also performed strongly, posting an 11.1% gain in July and achieving a 27% year-to-date return. Citadel's flagship Wellington fund, encompassing a diverse range of strategies including commodities, macro, fixed income, credit, equities, and quant, reported a 5.9% gain in July and a 12% return for the year.
This strong performance places Griffin's fund at the forefront among its multi-strategy peers, many of which faced losses in a volatile July marked by an AI stock sell-off. Situational Awareness, which previously managed up to $45 billion, reportedly suffered a 67% drawdown due to leveraged positions in AI infrastructure stocks, leading to margin calls and the sale of its public equity portfolio to Citadel.