--- title: "SNDK and BE: Citadel Has Already Cut 80% of Its Situational Awareness Risk" type: "News" locale: "en" url: "https://longbridge.com/en/news/296641989.md" description: "Hedge fund Citadel has reduced over 80% of its risk exposure from assets acquired from the collapsed AI-focused fund Situational Awareness. Citadel founder Ken Griffin disclosed that the firm executed more than 100 block trades totaling over $4 billion, primarily involving positions in SanDisk (SNDK) and Bloom Energy (BE). These acquisitions occurred after Situational Awareness was forced to liquidate its portfolio due to margin calls triggered by losses in both long and short AI-related bets. The timing benefited Citadel, as many AI stocks recovered shortly after the liquidation." datetime: "2026-08-21T17:19:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296641989.md) - [en](https://longbridge.com/en/news/296641989.md) - [zh-HK](https://longbridge.com/zh-HK/news/296641989.md) generator: "portal-rs" --- # SNDK and BE: Citadel Has Already Cut 80% of Its Situational Awareness Risk Hedge fund Citadel has already removed more than 80% of the risk it took on after buying assets from Leopold Aschenbrenner's AI-focused hedge fund Situational Awareness. In a letter obtained by *CNBC*, Citadel founder Ken Griffin said that the firm has completed more than 100 block trades worth over $4 billion. Those trades came after Situational Awareness was forced to sell its public stock positions in late July, which left Citadel with a large portfolio of AI-related investments to manage. This included large bets on flash-memory maker SanDisk (SNDK) and fuel-cell company Bloom Energy (BE). ### Summer Sale - Claim 70% Off TipRanks Two ETFs to trade BE long or short: BEX & BEZ It also included bets against software companies such as Adobe (ADBE) because Aschenbrenner believed that AI could hurt their businesses. However, the problem was that both sides of the strategy moved against the fund. Indeed, SanDisk and Bloom Energy each fell more than 50% during the AI selloff. At the same time, software stocks such as Adobe recovered. Situational Awareness therefore lost money on both its long positions and its short bets. Those losses eventually triggered margin calls, which forced the fund to sell its public stock portfolio. It was at this point that Citadel began discussions with Situational Awareness on July 29. One day later, it was reported that the fund had been forced to sell its public holdings. Citadel ultimately stepped in as a major buyer of those assets. ## **The Timing Worked in Citadel's Favor** Interestingly, the timing also ended up working in Citadel's favor. In fact, many AI-related stocks recovered after Situational Awareness was forced to sell. As a result, the late-July liquidation ended up occurring close to the bottom of the AI selloff. This helped Citadel's flagship Wellington fund gain 5.94% in July, which was its best monthly performance since 2022. *Reuters* also reported that Wellington's year-to-date return reached roughly 12%. ## **Is SNDK Stock a Good Buy?** Turning to Wall Street, analysts have a Strong Buy consensus rating on SNDK stock based on 14 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNDK price target of $2,203.13 per share implies 37.3% upside potential. (See SNDK Stock Forecast). ### Related Stocks - [BE.US](https://longbridge.com/en/quote/BE.US.md) - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [BEX.US](https://longbridge.com/en/quote/BEX.US.md) - [BEZ.US](https://longbridge.com/en/quote/BEZ.US.md) - [SNDG.US](https://longbridge.com/en/quote/SNDG.US.md) - [SNDQ.US](https://longbridge.com/en/quote/SNDQ.US.md) - [SNDU.US](https://longbridge.com/en/quote/SNDU.US.md) - [SNXX.US](https://longbridge.com/en/quote/SNXX.US.md) - [ADBE.US](https://longbridge.com/en/quote/ADBE.US.md) ## Related News & Research - [Bloom Energy Officer Sold Shares Worth Over $676K](https://longbridge.com/en/news/296280331.md) - [MEXC July TradFi Trading Shifts Toward AI Storage as SNDK Futures Volume Surges More Than 15x Times](https://longbridge.com/en/news/295780395.md) - [Bloom Energy director John T. Chambers disposes of 15,000 shares for $3.75 million](https://longbridge.com/en/news/295985088.md) - [Sandisk forecasts mid-to-high-teens revenue growth through 2030](https://longbridge.com/en/news/295832646.md) - [SanDisk publishes Investor Day 2026 presentation outlining NAND flash technology roadmap and growth strategy](https://longbridge.com/en/news/295823215.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**