Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#1

Post by mudil » Thu, Jul 30, 2026, 4:00 PM UTC

Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI
wsj.com

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#2

Post by d_silin » Thu, Jul 30, 2026, 4:23 PM UTC

Reminds me of LTCM fund story (very smart people X highly leveraged portfolio = a perfect recipe for massive losses on black swan day)

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#3

Post by furytrader » Thu, Jul 30, 2026, 4:48 PM UTC

The irony is that the WSJ had profiled Situational Awareness with a glowing story just 1-2 months ago. It reminds me of my old adage: "You don't want to read about your positions in a newspaper" - it paints a large target on your back.

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#4

Post by vzcx » Thu, Jul 30, 2026, 5:01 PM UTC

d_silin wrote: post #2

Reminds me of LTCM fund story (very smart people X highly leveraged portfolio = a perfect recipe for massive losses on black swan day)

LTCM was actually a lot more sophisticated, this fund's thesis was basically "number go up."

Count the OOMs!

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#5

Post by hbcondo714 » Thu, Jul 30, 2026, 5:07 PM UTC

More precisely, 23 new positions were reported in their latest filing just a couple months ago, most of those being semiconductors:

https://last10k.com/sec-filings/2045724

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#6

Post by darkwizard42 » Thu, Jul 30, 2026, 5:28 PM UTC

furytrader wrote: post #3

The irony is that the WSJ had profiled Situational Awareness with a glowing story just 1-2 months ago. It reminds me of my old adage: "You don't want to read about your positions in a newspaper" - it paints a large target on your back.

I think this is probably true. Allowed for Citadel and others to create a ton of pressure on SA's highly leveraged positions.

Always a bigger whale out there with the ability to exert pressure...

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#7

Post by nrenegar » Thu, Jul 30, 2026, 5:30 PM UTC

hbcondo714 wrote: post #5

More precisely, 23 new positions were reported in their latest filing just a couple months ago, most of those being semiconductors : https://last10k.com/sec-filings/2045724

It should be clarified that a number of those were puts.

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#8

Post by BiraIgnacio » Thu, Jul 30, 2026, 5:46 PM UTC

I didn't know buying other funds stock portfolio was even a thing. TIL

I guess it makes sense, wondering what Citadel will do with it...

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#9

Post by mudil » Thu, Jul 30, 2026, 6:03 PM UTC

Smart men go broke three ways: liquor, ladies, and leverage - Charlie Munger

Re: Citadel Buys Situational Awareness's Stock Portfolio After Big Losses in AI

#10

Post by reilly3000 » Thu, Jul 30, 2026, 6:41 PM UTC

My 401k is all money market right now. I did that immediately after reading the HF blog post specifically about how GLM 5.2 helped them out when they had refusals from closedai. The value is in all in the future utilization of inference infrastructure profitably. The margins collapse when models are commodities and they really need to be. This is going to be one hell of a ride.