Billionaire Ken Griffin's Citadel Sells Off Nvidia Shares

Key Points

• Citadel Advisors, led by billionaire Ken Griffin, has sold over 92 million shares of Nvidia since the beginning of 2023.
• The hedge fund now only holds 2% of the gaming and AI chipmaker, Nvidia.
• Reasons for the sale are not yet known but may be related to Nvidia's recent stock price decline.

Citadel's Stake in Nvidia

Citadel Advisors was previously Nvidia's third-largest shareholder, with a stake of over 5%. However, as of February 2023, Citadel's stake has been reduced to just 2%.

This significant reduction in holdings suggests that Citadel is no longer as bullish on Nvidia's prospects as it once was.

Possible Reasons for the Sale

There are several possible reasons why Citadel may have decided to sell off its Nvidia shares. One possibility is that the hedge fund is concerned about Nvidia's recent stock price decline.

Another possibility is that Citadel believes that Nvidia's growth prospects are limited.

However, Citadel has not yet publicly disclosed its reasons for the sale.

Nvidia's Stock Performance

Nvidia's stock price has declined by over 40% since the beginning of 2023. This decline is likely due to a combination of factors, including concerns about the global economy, rising interest rates, and increased competition in the gaming and AI chip markets.

Despite the recent decline, Nvidia's stock price is still up over 300% in the past five years.

Citadel's Investment Strategy

Citadel Advisors is a quantitative hedge fund that uses computer models to make investment decisions. The hedge fund is known for its use of high-frequency trading and its focus on short-term trading opportunities.

Citadel's sale of Nvidia shares is a sign that the hedge fund is changing its investment strategy.