Citadel Scoops Up Struggling Situational Awareness Stock Portfolio
Citadel has reportedly acquired a significant portion of the Situational Awareness fund's stock portfolio, following heavy losses for the AI-focused hedge fund in July. According to reports, Citadel bought the discounted portfolio after Situational Awareness suffered a 67% decline in July, although the fund remained up about 80% for the year.
The transaction comes as AI-linked stocks fell sharply in July, with Sandisk down 44%, CoreWeave falling nearly 26%, and Bloom Energy dropping around 32%. Situational Awareness had direct share positions in these companies as of March 31, according to its SEC filing.
It remains unclear which specific stocks were part of the transaction between Citadel and Situational Awareness, or whether the fund retained any of its Bitcoin miner positions, worth approximately $1.11 billion.