Serenity, known on X as "the white-haired stock guru," said Citadel’s recent moves unfolded in striking fashion. According to the post, Citadel first called for a surprise Federal Reserve rate hike, helping trigger market panic. It then bought billions of dollars in AI-related assets that were being sold under pressure as Situational Awareness, a fund tied to Leopold Aschenbrenner, faced liquidity stress. Serenity noted that the Fed ultimately did not raise rates, and that Citadel later said the drivers of the bull market remained intact. Earlier reports said Situational Awareness was hit by the market downturn because of leveraged positions, saw a sharp drawdown in net asset value in July, and sold part of its public equity portfolio to meet margin requirements. Citadel then took on some of those assets at a discount. In Serenity’s view, the market’s long-term upside case has not changed, and the episode looks more like a redistribution of assets during the deleveraging of leveraged capital.
Odaily reported that Serenity said in a post on X that Citadel’s recent actions were highly dramatic.
According to Serenity, Citadel called for a surprise Federal Reserve rate hike a few days ago, a move that sparked market panic. It later stepped in to buy billions of dollars in AI-related assets that were being sold under pressure when Situational Awareness, a fund under Leopold Aschenbrenner, ran into liquidity stress.
Serenity said the Federal Reserve ultimately did not raise rates. Citadel later said that "the drivers of the bull market remain intact."
Earlier reports said the Situational Awareness fund was hit by the market decline because of leveraged positions. Its net asset value saw a sharp drawdown in July, and it sold part of its public stock portfolio to meet margin requirements. Citadel later acquired some of those assets at a discount.
Serenity said the market’s long-term bullish logic has not changed, and that the episode looks more like a reallocation of assets during the deleveraging of leveraged capital.
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