Citadel says it shed over 80% of risk from acquired AI-investment portfolio

Citadel has shed more than 80% of the aggregate risk in investments it acquired from Situational Awareness, according to a letter to investors obtained by Business Insider. The firm said it completed nearly 100 block trades totaling more than $4 billion in market value while reducing the portfolio exposure. Citadel's flagship Wellington fund had acquired a large portion of the portfolio after the AI-focused hedge fund's leveraged investments in AI-chip and memory-chip makers incurred steep losses. The report says Citadel also exited most U.S. vega risk tied to the positions.