Citadel Buys Bulk of Struggling AI Hedge Fund's Stock Portfolio

Citadel, the investment firm led by Ken Griffin, has reportedly purchased a significant portion of Situational Awareness' public stock portfolio following the hedge fund's heavy losses in July. According to The Financial Times, Citadel bought the discounted portfolio after Situational Awareness fell about 67% in July due to AI-related market rout.

The transaction occurred as Aschenbrenner's fund approached existing investors and lenders for fresh capital and offered some investors the option to buy portfolio assets. Situational Awareness had reportedly needed cash to meet margin calls from its lenders, with The Journal reporting that the fund agreed to sell $3.5 billion of Anthropic shares before withdrawing from the deal.

The same filing showed direct share positions in companies like Sandisk, CoreWeave, and Bloom Energy as of March 31. Situational Awareness' exposure to miners expanding into AI and high-performance computing was also highlighted, with positions giving the fund a stake in seven Bitcoin mining companies.