Citadel Buys Battered Hedge Fund Portfolio After 67% Loss

A ~$16 billion hedge fund run by Leopold Aschenbrenner lost 67% in July 2026 as AI stocks plunged, forcing it to sell most holdings. Citadel bought what was left at a discount — already paying off, per the WSJ. The fund had bet big and borrowed to magnify those bets, so when AI stocks fell, losses compounded fast.