Citadel Lifts Wellington 5.9% After Buying $16 Billion AI Portfolio at 10% Discount
Updated
Updated · Crypto Briefing · Aug 5
Citadel Lifts Wellington 5.9% After Buying $16 Billion AI Portfolio at 10% Discount
3 articles · Updated · Crypto Briefing · Aug 5
Summary
Citadel’s Wellington fund gained 5.9% in July, lifting its 2026 return to 12% after it bought about $16 billion of AI-linked stocks from Situational Awareness in an overnight sale.
The portfolio was acquired at an estimated 10% discount, implying roughly $1.6 billion of immediate paper value as Citadel provided liquidity during the forced liquidation.
Situational Awareness had swelled to $45 billion before a sell-off in AI infrastructure stocks triggered a 67% drawdown and margin pressure that forced it to dump most of its public equities book.
The sale included holdings such as SK Hynix, Bloom Energy and CoreWeave, while the fund kept private assets including Anthropic; investors viewed Citadel’s purchase as removing a major source of pressure on AI stocks.