Overview
- Reporting on Friday shows the fund has bought call options in AMD, Bloom Energy, CoreWeave, SK Hynix, SanDisk and the Roundhill Memory (DRAM) ETF, marking a measured reentry to public markets.
- The options activity follows a July forced sale in which Citadel bought much of the fund’s public book and then executed more than 100 block trades to pare the acquired risk.
- Situational Awareness kept large private stakes, including a multibillion‑dollar holding in Anthropic, and its manager made a reported $400 million private investment after the summer losses.
- The SEC has subpoenaed major banks for records about their lending and margining to the fund, and Situational Awareness says it will cooperate with inquiries.
- The fund’s collapse grew from extreme concentration and heavy leverage — filings show Sandisk and Micron made up more than half of disclosed U.S. holdings and the firm used up to 400% leverage after posting outsized gains since 2024 — leaving recovery tied to illiquid assets and an unclear source of funds for new trades.