Citadel Cuts Over $4 Billion from Situational Awareness Bets

By EC Assets · Published 21 August 2026

Ken Griffin’s Citadel has reduced its exposure to positions acquired from Situational Awareness. The firm shed over $4 billion of bets tied to the AI-focused hedge fund. This move follows Citadel taking on a majority of Situational Awareness’s stock bets last month. Situational Awareness was reportedly nearly toppled by its investments. Citadel founder Ken Griffin stated the firm "shed more than 80% of the aggregate risk from the original portfolio" of stocks. The firm sold more than 80 per cent of the portfolio it had acquired. This reduction in aggregate risk from the Situational Awareness portfolio was achieved via $4 billion in block trades. Citadel unwound more than 80% of risk linked to the Situational Awareness portfolio. The firm exited vega exposure and freed capital as part of this process. Citadel’s actions involved divesting over 80% of the Situational Awareness portfolio. The original portfolio was purchased from the troubled hedge fund. The decision to offload these positions came after the AI-focused hedge fund faced significant challenges. This article is intended for informational purposes only. It does not constitute investment advice.