Key facts
- Citadel has reduced over 80% of the risk from the Situational Awareness portfolio it acquired.
- The firm completed nearly 100 block trades totaling over $4 billion in market value.
- Citadel exited the vast majority of its vega risk in the US.
- Citadel Wellington gained 5.94% in July, with year-to-date gains over 12%.
- Situational Awareness sold most of its investments to Citadel for $16 billion due to steep losses.
Citadel, the hedge fund founded by Ken Griffin, has significantly reduced its exposure to the Situational Awareness portfolio it acquired last month. According to a letter to investors, Citadel has shed over 80% of the aggregate risk from the acquired investments, completing nearly 100 block trades totaling more than $4 billion in market value. Griffin highlighted the firm's ability to manage complex risks, noting that Citadel "quickly exited the vast majority of the vega risk" in the US.
The Citadel Wellington Fund, the firm's flagship multi-strategy fund, reported a 5.94% gain in July, bringing its year-to-date performance to over 12%. The acquisition occurred after Situational Awareness, an AI hedge fund led by Leopold Aschenbrenner, faced substantial losses on its highly leveraged positions in AI and memory chip makers, leading it to sell most of its investments to Citadel for $16 billion.