Situational Awareness Fund Sells Portfolio to Citadel, Retains Anthropic Stake

Former OpenAI researcher Leopold Aschenbrenner's Situational Awareness hedge fund has offloaded a massive chunk of its public stock holdings to Ken Griffin's Citadel after a steep loss streak in the past month.

From Rocket Ride to Rough Landing: 2024's Hottest AI Fund Performance

The fund posted a 439% YTD return through June and saw assets under management swell to as much as $45 billion at its peak. A broader pull‑back in AI infrastructure spending then triggered a sharp decline in portfolio values.

Citadel’s Acquisition Targets: The Hardest‑Hit Positions

■SK Hynix (memory chips) – down over 30%

■SanDisk – down over 30%

■Bloom Energy (clean‑energy developer) – down over 30%

■Nebius Group (neo‑cloud provider) – down over 30%

Leverage amplified these losses, a common hedge‑fund tactic that magnifies downside risk.

The Remaining Gold Mine: Anthropic and Other Private Stakes

While the public portfolio was sold, Situational Awareness still holds a $5 billion stake in Anthropic, valued at $965 billion after its May Series H round and slated for an IPO as early as October. The fund also owns private positions in chipmaker MatX and AI data‑center startup Fluidstack, the latter reportedly courting a new round at an $18 billion valuation.

Investor Reaction and Fresh Capital Call

In a July 24 letter to investors, Aschenbrenner framed the sell‑off as “one of the best buying opportunities since early last year” and invited fresh commitments starting August 1. Bloomberg reports, however, that the expected inflow of new capital fell short.

Deniz Arslan – As a venture‑capital partner, I see this as a cautionary tale about the volatility in AI‑infrastructure valuations. Citadel’s move underscores liquidity risks inherent in leveraged strategies, while the lingering Anthropic stake remains the fund’s primary upside catalyst. Diversifying private‑market exposure will be essential for investors looking to avoid a repeat of this sharp correction.