Ken Griffin’s hedge fund purchased discounted public equities from the AI-focused fund following a 67% July loss.
Citadel has acquired a significant portion of Situational Awareness’s public stock portfolio after the fund suffered heavy losses during July’s artificial intelligence sector rout. The deal follows a 67% decline in the fund’s value last month, though it remains up 80% for the year, according to investor communications.
Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrenner, had reportedly approached investors for fresh capital and explored asset sales to meet margin calls. The fund held about $10 billion in assets, including a stake in Anthropic, before offloading leveraged positions.
Earlier reports indicated Situational agreed to sell $3.5 billion in Anthropic shares to a group led by Greenoaks and Sequoia Capital but withdrew from the transaction Thursday morning. The fund’s year-to-date performance was previously reported at 439% through June.