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Citadel cuts more than 80% of Situational Awareness portfolio

Citadel said it reduced the inherited aggregate risk after executing nearly 100 block trades totaling more than $4 billion.

Reported · Written up by our desk · Hedge Funds

Citadel has sold more than 80% of the positions it acquired from the hedge fund Situational Awareness, according to a Hedgeweek report citing the Financial Times.

The firm told investors it substantially reduced the aggregate risk it inherited, after taking on the majority of Situational Awareness’s stock positions when the AI-focused hedge fund came under pressure during a sharp reversal in technology shares.

Citadel also said it executed almost 100 block trades in recent weeks, with a combined value of more than $4 billion, describing the transactions as among the largest block trades seen in the market this year.

In a letter to investors, Ken Griffin said Citadel sought to act decisively during market dislocation, and the company framed the unwind as a quick reduction of exposure once the positions were absorbed, noting its flagship fund gained 6% in July.

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