Ken Griffin’s Citadel sheds over 80% of Situational Awareness’ bets

Ken Griffin's Citadel has divested over 80% of its holdings in Situational Awareness, a hedge fund run by former OpenAI researcher Leopold Aschenbrenner, according to a letter to investors. The divestiture came after Situational experienced significant losses in its tech investments, leading it to liquidate much of its public equities portfolio.

Citadel acquired the majority of Situational's stock positions at a substantial discount, around 10%, helping to stabilize the market during the height of the AI stock sell-off in July. The firm, which oversees approximately $77 billion in assets under management, declined to comment on the matter. Citadel's ability to quickly assess complex risks, deploy capital swiftly, and execute with precision was crucial in navigating these challenging market conditions.