Situational Awareness Sells Public Portfolio to Citadel at 10% Discount After $35 Billion Blowup
Updated
Updated · The Edge Malaysia · Aug 26
Situational Awareness Sells Public Portfolio to Citadel at 10% Discount After $35 Billion Blowup
3 articles · Updated · The Edge Malaysia · Aug 26
Summary
Citadel bought Situational Awareness’ entire listed-stock portfolio at a 10% discount after the AI-focused hedge fund was forced into a late-July fire sale.
A reversal in AI and chip stocks hit both sides of the fund’s trade, and roughly 4x leverage turned the move into a 67% July plunge that triggered margin calls from Goldman Sachs, JPMorgan and Bank of America.
The collapse erased nearly $35 billion from a fund that had swelled to about $45 billion in assets by June, though it still holds just over $10 billion in private tech stakes led by Anthropic.
Citadel is reportedly already sitting on more than $2.5 billion in gains as tech stocks rebounded, while founder Leopold Aschenbrenner has shifted toward private AI supply-chain bets and is not taking new capital yet.