Citadel Advisors acquired distressed AI semiconductor positions from Situational Awareness, the fund run by former OpenAI researcher Leopold Aschenbrenner, after it fell 67% in July and was forced to unwind most of its $16 billion public-equity book. Citadel negotiated to buy much of the portfolio in late July, with some positions purchased at discounts exceeding 10%, according to Reuters. On Aug. 21, Ken Griffin told investors that Citadel had shed more than 80% of the aggregate risk from the original portfolio through nearly 100 block trades worth more than $4 billion, with ten of those trades reportedly the largest intraday block trades of the year in their respective securities. The $4 billion figure represents market value traded, not profit, and Reuters said it could not determine how much Citadel actually earned. Citadel Wellington gained 5.94% in July and was up about 12% for the year, according to Griffin's investor letter.
Micron Technology Inc
Sandisk CorpCitadel acquired distressed AI fund assets at discounts and unwound positions, generating trading activity and potential profit.
