Citadel Offloads Risk From Situational Awareness

Summary

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.