Citadel’s Wellington fund gained 5.9% in July, pushing its year-to-date returns to 12%, after acquiring approximately $16 billion in AI stocks from the Situational Awareness fund at an estimated 10% discount during a fire sale. The fund, run by former OpenAI researcher Leopold Aschenbrenner, collapsed from $45 billion in peak assets under management to a forced seller following a devastating 67% drawdown. Situational Awareness was compelled to liquidate the majority of its public equities portfolio, which included significant positions in SK Hynix, Bloom Energy, and CoreWeave, while retaining private investments such as its stake in Anthropic.
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