Citadel funds gain in July as many hedge funds nurse AI sell-off related losses

Hedge fund Citadel's three large portfolios boasted gains last month when many industry rivals suffered losses amid a technology stock selloff fueled by worries about artificial intelligence spending. The firm's flagship Wellington fund gained 6% in July, leaving it up 12% for the year, while Citadel's tactical trading fund gained 11%, leaving it up 27% for the year to date. Its stock focused equities fund climbed 14.2% last month and is now also up 27% for the year to date. The numbers were released to investors less than a week after Citadel, which oversees some $71 billion in assets, purchased AI stocks from hedge fund Situational Awareness when the San Francisco-based firm faced margin calls.