Citadel buys bulk of Situational Awareness stock portfolio after AI rout: Reports
Situational Awareness retained about $10 billion in assets, including its Anthropic stake, after reportedly selling leveraged public stock positions to Ken Griffin’s Citadel.
Situational Awareness, a hedge fund founded by a former OpenAI researcher, has reportedly sold a large portion of its public stock portfolio to Ken Griffin’s Citadel amid heavy losses during July’s artificial intelligence stock market downturn. The Financial Times first reported on Thursday that Citadel had purchased the majority of Situational Awareness's portfolio holdings after the fund’s AI-related investments declined about 67% in July.
Despite Situational Awareness having gained around 80% for the year as of the time of the letter sent to investors, the fund reportedly required cash to meet margin calls from its lenders. The fund and investors explored the option of buying portfolio assets, but Situational eventually agreed to sell $3.5 billion of Anthropic shares to a group led by Greenoaks and Sequoia Capital.
The fund retained approximately $10 billion in stocks and private investments, including Anthropic, after the transaction. Situational Awareness had grown to about $24 billion in assets within two years before the reversal.
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