Citadel funds gain in July as many hedge funds nurse AI sell-off related losses

Hedge fund Citadel's three large ​portfolios boasted gains last month when ‌many industry rivals suffered losses amid a technology stock selloff fueled by worries about artificial intelligence ​spending.

The firm's flagship Wellington fund gained 6% ​in July, leaving it up 12% ⁠for the year, while Citadel's tactical ​trading fund, which is a mix of ​long/short equities and quantitative strategies, gained 11%, leaving it up 27% for the year to ​date, an investor said. Its stock focused ​equities fund climbed 14.2% last month and is ‌now ⁠also up 27% for the year to date.

The numbers were released to investors less than a week after Citadel, ​which oversees ​some $71 billion ⁠in assets, purchased AI stocks from hedge fund Situational Awareness when ​the San Francisco-based firm faced ​margin ⁠calls.

Many other hedge funds that bet big on chip makers and other AI ⁠stocks ​suffered last month with ​losses in the double digit range, Reuters previously reported.