Billionaire hedge fund manager Ken Griffin, CEO of Citadel, has made significant changes to his portfolio, selling a majority stake in Palantir Technologies and increasing his holdings in Summit Therapeutics. These moves, detailed in Citadel's recent 13F filing, offer insights into Griffin's investment strategy and market outlook.

Griffin's decision to sell 91% of his Palantir stake comes after the AI data-mining specialist's stock skyrocketed 945% since late 2022. The sale may indicate that Griffin believes Palantir's valuation has reached unsustainable levels, with shares trading at over 42 times Wall Street's consensus sales forecast for 2025 and 137 times projected EPS. Citadel also hedged its Palantir position with put and call options, suggesting a more cautious stance on the stock.

Meanwhile, Griffin has been increasing his holdings in Summit Therapeutics, a clinical-stage cancer drug developer. Citadel's latest filing shows a significant increase in Summit shares, following a head-to-head trial win against Keytruda with its lung cancer drug, ivonescimab. Summit's stock price has surged, with analysts expecting a 139% gain from its Nov. 29 close.



Griffin's actions hint at a shift in focus, moving away from AI stocks like Palantir and toward biotechnology, particularly in the promising field of immunooncology. Despite the potential for significant gains, investors should consider Summit's high valuation ($13.6 billion) and uncertain revenue timeline. As with any investment, a thorough analysis of risk and potential returns is essential.



In conclusion, Ken Griffin's latest portfolio adjustments reflect his strategic approach to investing, with a keen eye for potential breakthroughs in the biotechnology sector. As investors, it's crucial to evaluate these moves in the context of our own risk tolerance and investment goals. While Griffin's track record is impressive, it's essential to conduct our own due diligence and make informed decisions based on our individual financial circumstances.