Hedge fund Situational Awareness has transferred the majority of its equity holdings to Citadel following significant financial losses tied to artificial intelligence investments. The firm reported a net asset value of $45 billion on July 1 but has since entered a state of crisis.
The liquidation involves the bulk of the fund's stock portfolio after AI-driven market volatility eroded its capital position. This emergency sale to Citadel follows the firm's rapid decline from its $45 billion valuation recorded at the start of the month.