KEN GRIFFIN: WE HAVE SHED MORE THAN 80% OF THE AGGREGATE RISK WE TOOK ON FROM OUR SITUATIONAL AWARENESS PORTFOLIO. So, Citadel creates fear in the market by saying there will be a rate hike to cause a liquidation of these high beta semiconductor names. Then, they buy up all of Leopold's leveraged exposure for 40-50 cents on the dollar. Two weeks later on August 11th, they issue a note to clients saying that they think the market is ready to "systematically start buying" the names that got sold off. Then today, Ken Griffin tells investors that they sold most of their exposure which means he unwound those names in the past 2 weeks after their massive reversals from July. Wall Street is ruthless.
OH. MY. GOODNESS. CITADEL HAS BOUGHT A MAJORITY OF THE PUBLIC ASSETS FROM LEOPOLD'S SITUATIONAL AWARENESS FUND. So...Citadel scares everyone on Tuesday about a surprise rate hike during FOMC that WE ALL KNEW was not going to happen... On Wednesday, the entire market freaks out about the rate hike which causes the selling to compound on itself creating 50-70% drawdowns across the board in high beta semicondcutor names... Which means Leopold who we now know had $45B of assets and was 400% LEVERED ends up being the sacrifice as he gets liquidated at what theoretically could be the bottom due to not having the margin requirements to keep solvent... AND THE PERSON WHO CAUSED THE SELLOFF WITH THE RATE HIKE FEARS ENDS UP COMING IN TO BUY HIS ASSETS FOR 40 TO 50 CENTS ON THE DOLLAR. By the way, Leopold is getting married this weekend. I think he wanted to make sure he wasn't getting margin called during his wedding. A vet on wall street in Ken Griffin takes out the young new kid. ABSOLUTE. CINEMA.
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