Ken Griffin's Citadel hedge fund posted strong gains in July, bolstered by the acquisition of assets from Leopold Aschenbrenner's Situational Awareness.
Ken Griffin's Citadel reported significant gains across its major hedge funds in July, driven by a market recovery and a discounted purchase of assets from the collapsing Situational Awareness fund. The firm's flagship Wellington fund returned 5.9% in July, marking its best monthly performance since 2022. Additionally, the equities fund saw a 14.2% monthly increase, while the tactical trading fund gained 11.1%. These gains were supported by Citadel's acquisition of the public-stock portfolio from Situational Awareness, founded by Leopold Aschenbrenner. The fund faced a rapid unraveling after a AI-focused strategy backfired, forcing a liquidation of positions. Citadel purchased many of these holdings at a significant discount, allowing the firm to benefit from the market rebound at the month's end. Citadel managed approximately $71 billion in assets as of July 1 and continues to leverage market dislocations to deploy capital into distressed situations.