Ken Griffin says Citadel unwound more than 80% of risk tied to Situational Awareness portfolio
Citadel has unwound more than 80% of the portfolio risk it acquired from Situational Awareness through over $4 billion in block trades, said Ken Griffin.
TL;DR
- Citadel has unwound more than 80% of the risk from the Situational Awareness portfolio it purchased.
- This risk reduction was achieved through over 100 block trades totaling more than $4 billion in market value.
- Citadel's flagship multistrategy fund returned 5.94% in July, its best month since 2022.
- Situational Awareness faced losses due to concentrated positions in the AI trade and short positions in software companies that were negatively impacted by AI.
- The AI trade has rebounded since Citadel's acquisition, suggesting the sale marked a bottom for the sell-off.
- Griffin expressed gratitude to banks for their cooperation in the rapid transfer of the portfolio.