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By Opalesque:

Citadel offloaded over 80% of the risk from the AI-focused stock portfolio it acquired from Leopold Aschenbrenner's embattled hedge fund, Situational Awareness. Citadel completed nearly 100 block trades totalling more than $4 billion in market value, according to an August letter to investors seen by Business Insider.

Citadel LLC is an American multinational hedge fund and financial services company. Founded in 1990 by Kenneth Griffin, it has more than $77 billion in AuM as of January 2026.

Background

Situational Awareness' hedge fund, named after Aschenbernner's 2024 essay, had $45 billion AuM at its peak.

In July 2026, a sharp tech selloff hit the fund hard due to its heavily leveraged and concentrated bets on artificial intelligence and semiconductor infrastructure, according to Bloomberg.

Indeed, that month, global technology and semiconductor stocks suffered a sharp selloff as investors questioned whether heavy capital spending on AI infrastructure would yield sustainable returns. Major chipmakers like Samsung, SK Hynix, and various US memory and hardware suppliers ......................

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