Citadel’s acquisition of a discounted equity portfolio from embattled AI-focused hedge fund Situational Awareness is the latest example of founder Ken Griffin capitalising on periods of market stress, reinforcing a strategy that has repeatedly generated returns during hedge fund dislocations, according to a report by Reuters. The transaction allowed Situational Awareness to avoid selling its valuable private stake in AI company Anthropic while providing Citadel with discounted exposure to a basket of AI-related stocks. The deal helped stabilise sentiment after concerns mounted that the unwinding of one of the industry’s largest AI-focused hedge funds could trigger broader selling across technology markets. Several stocks reportedly held by Situational Awareness, including CoreWeave and Bloom Energy, rallied sharply following news of the transaction. The Situational Awareness transaction comes during a challenging period for global hedge funds, with AI-related equities experiencing sharp volatility after months of exceptional gains.