Citadel unloads $4B from situational awareness after 67% AI loss
Ken Griffin's Citadel just sold off $4 billion, more than 80% of a portfolio it picked up from Situational Awareness, an AI-focused hedge fund run by former OpenAI researcher Aschenbrenner.
The massive selloff came after Situational took a huge 67% loss when AI stocks tanked, forcing it to unload most of their $16 billion in public equities.
Citadel moved fast, making nearly 100 block trades, including some of the biggest single-day trades this year.
Ken Griffin credits speed, fund +12%
Griffin said his team's ability to "quickly evaluate complex risks" and act with "deploy capital with speed and conviction, and execute with precision" was key here.
While Situational stumbled, Citadel's main fund actually climbed 5.94% in July and was up 12% for the year.
It's a reminder that even when markets get wild, experience and quick thinking can make all the difference.