Ken Griffin's Citadel LLC. reportedly purchased most of Leopold Aschenbrenner's AI-focused hedge fund Situational Awareness' public equities portfolio, sparking discussion on social media, with investors questioning the timing of the transaction after Citadel Securities LLC. recently called for a surprise Federal Reserve rate hike.
Forced AI Fund Sale Ends With Citadel According to Reuters News report, Citadel hedge fund acquired a bulk of Situational Awareness' public stock holdings after the AI-focused hedge fund was forced to unwind positions following the recent AI stock selloff.
The report said the fund had come under pressure to either raise fresh capital or offload its portfolio, the report added, citing two sources familiar with the matter.
The deal was first reported by The Wall Street Journal on Thursday.
Citadel LLC, Citadel Securities, Situational Awareness and Aschenbrenner did not immediately respond to Benzinga's request for comment.
