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

_Friday, August 21, 2026 at 8:00 AM EDT · Products, Capital · Latest · Tier 2 — Notable_

![Citadel says it shed over 80% of risk from acquired AI-investment portfolio — Primary](https://i.insider.com/6a88760a4569a4ec219f8e58?width=1200&format=jpeg)

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.

## Sources

- [Insider](https://www.businessinsider.com/citadel-situational-awareness-portfolio-ken-griffin-cut-risk-2026-8)

---
Canonical: https://techandbusiness.org/newswire/4phz2z97pNF6eQlagYb5H1
Retrieved: 2026-08-24T10:14:36.885Z
Publisher: Tech & Business (techandbusiness.org)