Citadel Securities says block trades removed more than 80% of risk from acquired portfolio

Citadel Securities founder Ken Griffin told clients on Friday that the firm has already stripped out more than 80% of the overall risk tied to the investment portfolio it bought from Leopold’s Situational Awareness fund assets. According to a letter obtained by CNBC, the risk reduction was carried out through more than 100 block trades with a combined market value of over $4 billion. Griffin said the transfer would not have been possible without close coordination from the trading desks and prime brokerage teams at the banks serving both companies, and he thanked them for moving the portfolio quickly. He also confirmed that Wellington, the firm’s flagship multi-strategy fund, posted a 5.94% return in July. CNBC had earlier reported that the result marked the fund’s best monthly performance since 2022.