After the market learned in late July that Leopold Aschenbrenner's Situational Awareness hedge fund had blown up under too much Total Return Swap and option leverage (as we had warned a month earlier would happen), the next big question facing investors was: how long would Citadel keep the positions it bought from Leopold (at a huge market and transactional discount - recall Citadel only agreed to purchase the public book at a 10% discount off what was already a badly beaten down price), and would Ken Griffen prove to be as firm a believer in the AI theme as the prior, 24-some year old owner of stocks such as Bloom Energy, Sandisk, Micron, Taiwan Semi and Nebius.
We got the answer from Griffin himself earlier today when the Citadel CEO said in a letter to investors that Citadel has sold most, or more than 80%, of the portfolio it took on from buying the majority of Situational Awareness’s stock bets last month after the AI-focused hedge fund was nearly toppled by the recent tech sell-off.
“To date, we have successfully shed more than 80% of the aggregate risk from the original portfolio" Ken Griffin wrote in the letter that rushed to make it clear he has zero intentions of holding the extremely volatile memory and other chip stocks longer than was absolutely necessary.
Ken Griffin to his investors in a letter, three weeks after buying Leopold Aschenbrenner’s portfolio:
"We have now successfully shed more than 80% of the aggregate risk from the original portfolio. We completed nearly 100 block trades totaling over $4 billion"
this is CNBC on… READ MORE AT SOURCE »Originally reported by ZeroHedge NewsHOW DO YOU SEE THIS STORY?Choose your pill. Your vote is anonymous.0 TOTAL VOTES
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