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Situational Awareness Sells Public Portfolio to Citadel After Losses

AI hedge fund Situational Awareness has sold the majority of its public stock portfolio to Ken Griffin’s Citadel following significant losses over the past month. The fund's overall assets have reportedly fallen to approximately $10 billion.

  • Situational Awareness, founded by Leopold Aschenbrenner, sold most of its public stock portfolio to Citadel.
  • The fund experienced steep losses over the past month, with overall assets reportedly falling to around $10 billion from a peak of $45 billion.
  • Situational Awareness retains its private investments, including a $5 billion stake in Anthropic.

Situational Awareness, an AI hedge fund established by former OpenAI researcher Leopold Aschenbrenner, has sold the majority of its public stock portfolio to Ken Griffin’s Citadel. This follows steep losses incurred over the past month, as reported by the Wall Street Journal.

The fund, which reportedly returned 439% for the year through June, saw its assets under management grow to as much as $45 billion at its peak. However, positions began dropping sharply amid a broader decline in AI infrastructure investments, with losses amplified by leverage.

Some of the hardest-hit stocks included memory chip producers SK Hynix and SanDisk, clean energy developer Bloom Energy, and neocloud provider Nebius Group, all of which plummeted by over 30% in the past month. Following Citadel's purchase, Situational Awareness' overall assets are reported to have fallen to roughly $10 billion, down from around $20 billion in recent months.

Despite the sale of its public holdings, Situational Awareness has retained its private company investments. Notably, it continues to hold a stake in Anthropic, currently valued at $5 billion, according to Bloomberg. Anthropic was last valued at $965 billion in a Series H round in May and is expected to go public as soon as October.

Why this matters: The sale highlights the volatility in AI infrastructure investments and the impact of market downturns on leveraged hedge funds.

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