Citadel founder and CEO Ken Griffin is giving more insight into Wall Street’s most dramatic AI blowup of the year. Griffin told clients in a Friday letter that the firm has already unwound more than 80% of the risk from the trading book it snapped up from Leopold Aschenbrenner‘s Situational Awareness.
The math backs up the swagger: Griffin’s flagship multistrategy fund, Wellington, gained 5.9% in July, its best month since 2022, CNBC reported. Griffin said the firm executed over 100 block trades worth more than $4 billion in market value to bring down its exposure.
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How the Rescue Unfolded
The rescue traces back to late July. Situational Awareness collapsed under the weight of leveraged bets on AI stocks, and the fund sold the bulk of its roughly $16 billion public equities portfolio to Citadel after facing margin calls, with prime brokers including Goldman Sachs and JPMorgan Chase helping facilitate the sale, Reuters reported.
