Citadel, founded by billionaire Ken Griffin, has stepped in to rescue California-based hedge fund Situational Awareness after it suffered significant losses due to souring bets on artificial intelligence stocks.

A History of Rescue Deals

Griffin has a history of identifying opportunities and providing financial support to struggling hedge funds. In the past, Citadel has rescued several hedge funds, including Sowood Capital and Amaranth Advisors.

In this latest deal, Citadel executives worked through the night to analyze Situational Awareness’s trading book positions and determine the liquidity of its bets. After a thorough review, Citadel decided to purchase a portion of the fund’s book.

Situational Awareness’s founder, Leopold Aschenbrenner, wrote to investors, “We let you down,” after the fund lost 67% of its value in July. The fund was forced to unwind most of its $16 billion public equities book.

A Disciplined Approach to Risk-Taking

Griffin’s approach to risk-taking has been a key factor in Citadel’s success. He has stated that his team focuses on disciplined risk-taking and seizing market opportunities when others cannot. This approach has allowed Citadel to capitalize on market stress and make strategic investments.

Griffin’s personal fortune is estimated to be around $52 billion, and he has donated over $2.5 billion to various causes, including medical research and educational institutions.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.