Citadel Scoops Up Situational Awareness Portfolio at Discounted Price

Citadel has purchased much of Situational Awareness's publicly traded stock portfolio after the hedge fund suffered heavy losses in July due to a broad selloff in AI-linked equities.

The deal comes after Situational Awareness, run by former OpenAI researcher Leopold Aschenbrenner, saw its performance deteriorate in July, with reports indicating it fell around 67% during the month. The fund was still up roughly 80% for the year at the time of a letter sent to investors.

Citadel reportedly bought the portfolio at a discount, taking advantage of pricing dislocations that occurred across an entire thematic trade rather than a single company-specific issue. The exact holdings included in the Citadel transaction are unclear, and it remains uncertain whether Situational retained any of its Bitcoin miner positions after the sale.