Citadel Offloads Risk From Situational Awareness

Bloomberg's Hema Parmar reports that Citadel has offloaded more than 80% of the risk from the Situational Awareness stock portfolio it acquired at a 10% discount, selling about $4 billion across roughly 100 block trades. The deal boosted Citadel's fund by about 6% in July, doubling its year-to-date return to around 12%. The report also highlights a bidding war involving Jane Street, Millennium, Sequoia, and Greenoaks, while Situational retained its coveted Anthropic stakes. - Citadel acquired the Situational Awareness stock portfolio at a 10% discount after the AI hedge fund ran into trouble. - Citadel has offloaded more than 80% of the acquired portfolio's risk. - The unwind involved about 100 block sales with a market value of $4 billion. - Citadel's fund gained about 6% in July, bringing year-to-date return to roughly 12%. - Jane Street and Millennium bid for public stock; Sequoia and Greenoaks pursued the private book. - Situational Awareness chose not to sell its coveted Anthropic stakes.