Ken Griffin's Citadel bought up assets from Leo Oshbreder's collapsed $45B hedge fund at a discount, leaving it with $10B. Oshbreder's AI-heavy portfolio was leveraged 3-4x and dropped 67% in a month, triggering margin calls that forced the fire sale on his wedding day.
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Alright, part 2 of this wild story. Some new data came out today. Leo Oshbreder's $45 billion fund blew up and it was actually his wedding day, which just, man, awful. And he's marrying the chief of staff to Anthropic CEO Dario. And this is— a lot of people speculate that he had insider information or trading because most of his trades were in AI and AI-related stocks. Now, if you don't know this guy's story, at 19 years old, he's like a genius savant, launches his hedge fund, is crushing. He worked at OpenAI and other places. They were up over 1,000% after fees. I mean, absolutely crushed it. And his fund got over $20 billion under management in a few years. Like, this is crazy what he has done. Now, their fund did use quite a bit of leverage. For every dollar they brought in, 3 to 4x leverage. And unfortunately, there's been a huge sell-off in this space and a lot of their assets. And those losses caused them to be down 67% in a single month. But what's crazier is this guy. This is Ken Griffin. He runs Citadel. Citadel like runs the world if you don't know who these guys are. And many people speculate Citadel was the wolf on Wall Street that took them out. They predicted Fed rate hikes, which didn't happen. Because of that prediction though, Citadel's such a big mover, markets sold off and they got margin called. Rates didn't move and ta-da, Citadel acquired their portfolio for pennies on the dollar. The next day, all of those holdings rallied in double digits, like huge numbers. Now update, according to the Wall Street Journal, they were not completely wiped out. They had a very slimmed-down portfolio. They're left with $10 billion down from their $45 billion just a few days ago, and Citadel captured most of that at a 10% market discount before the big rally. So Citadel made, I don't know, 30-35% on that trade. Not too bad for Ken Griffin and Citadel. But man, tough week for this guy. I'm rooting for him, dude. I hope he does well on his wedding. It's just, that's just tough. But comment down below if you have more details. I'd love to do a part 3.
