Discounted Acquisition: Situational Awareness Position Helps Fortress Flagship Fund Reverse Mediocre Performance

The Citadel flagship fund rose 5.9% in July. Previously, the firm purchased a batch of artificial intelligence stocks at a discount from the distressed hedge fund Situational Awareness. Sources familiar with the matter said that before this transaction, Ken Griffin's Citadel's Wellington fund had only risen 0.45% as of July 24. According to insiders who requested anonymity due to the sensitivity of the information, this deal also boosted the fund's year-to-date return to 12%. Last week, Citadel acquired part of the Situational Awareness public market stock portfolio at a 10% discount. At the time, the hedge fund, founded by former OpenAI researcher Leopold Aschenbrenner, was eager to raise cash to meet margin calls related to its highly leveraged investments in artificial intelligence.