(Bloomberg) -- Ken Griffin's Citadel offloaded more than $4 billion of bets that it snagged when the firm bought a stock portfolio from embattled AI hedge fund Situational Awareness.

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"To date, working closely with our trading partners, we have successfully shed more than 80% of the aggregate risk from the original portfolio," Griffin said in an investor note Friday. "In this effort, we have completed nearly 100 block trades totaling over $4 billion in market value."

Citadel struck a deal late last month to buy stocks from Situational Awareness, a hedge fund led by Leopold Aschenbrenner that was facing margin calls. Aschenbrenner's hedge fund was able to stabilize after reaching the deal with Griffin's firm.

"On July 29, we entered discussions with Situational Awareness to acquire a material portion of their holdings, a transaction that would strengthen their balance sheet and mitigate the risk of a tail event," Griffin said in the letter. "In a matter of hours, our team analyzed and priced their global portfolio."

Citadel's flagship hedge fund, Citadel Wellington, rose 5.94% in July, bringing its year-to-date gains to 12.02%. A Citadel spokesperson declined to comment on the investor letter.

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