Griffin's letter details 100+ block trades worth $4B to cut exposure from the AI-focused fund. Bloom Energy (BE) was among stocks hit hardest, Alpha Score 46.
Ken Griffin told Citadel clients the firm has unwound more than 80% of the aggregate risk from the portfolio it bought from Leopold Aschenbrenner's Situational Awareness hedge fund, according to a letter obtained by CNBC.
Griffin said Citadel executed more than 100 block trades with a combined market value of $4 billion to reduce the exposure. The fund purchased the assets after Situational Awareness was forced to sell all its public stock positions in late July, CNBC's David Faber reported.
The AI-focused fund suffered steep losses in June and July as stocks such as Sandisk and Bloom Energy tumbled more than 50%. Software names like Adobe rebounded, squeezing short positions. The dual hit triggered margin calls and compulsory sales.
Bloom Energy, now trading under a Mixed Alpha Score of 46 out of 100, was among the holdings hit hardest.
Griffin wrote that the transaction "could not have been completed without the extraordinary cooperation of the trading and prime brokerage teams at the banks serving both firms." Citadel's flagship Wellington fund returned 5.94% in July, its best month since 2022, the letter said.
Since Citadel stepped in, the AI trade has rebounded, marking a bottom for the sell-off, the letter implied.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.