With Situational Awareness AI deal, Citadel's Griffin rides to the rescue again
Citadel's founder this week reprised his role as one of Wall Street's rescue buyers, stepping in to salvage California hedge fund Situational Awareness as it buckled under souring bets on artificial intelligence stocks.
Ken Griffin, billionaire investor and founder of Citadel, has stepped in to rescue California hedge fund Situational Awareness amid its losses in AI stocks. Citadel's founder and CEO assembled his top executives to investigate the fund's situation, which lost 67% of its value in July after a selloff in AI stocks. The fund's portfolio had to be unwound, with most of its $16 billion public equities book liquidated.
Griffin, 57, reached out to Situational Awareness and spoke directly with the young founder, Leopold Aschenbrenner. They conducted an all-night analysis of the fund's trading book positions and liquid bets. After the investigation, Citadel bought a chunk of Situational Awareness' book, with Aschenbrenner writing to his investors, "We let you down."
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