Key facts
- The fund achieved 6% gains in September.
- Artificial intelligence played a role in the fund's performance.
- The fund is led by a former Citadel trader.
A hedge fund founded by a former Citadel trader achieved a 6% gain in September, reportedly aided by artificial intelligence. This performance occurred during a period of market stress and volatility, particularly within AI-related equities. The fund's success highlights the growing integration of AI in financial strategies. Citadel, led by Ken Griffin, recently acquired a discounted equity portfolio from the AI-focused hedge fund Situational Awareness, which was facing margin calls. This transaction allowed Situational Awareness to avoid selling its stake in AI company Anthropic and provided Citadel with discounted exposure to AI stocks, reinforcing its strategy of capitalizing on market dislocations.