Asia hedge funds hit by AI sell-off as regional stock-pickers endure record July losses
Asia-focused hedge funds suffered widespread losses in July as a sharp reversal in AI-related stocks triggered what Goldman Sachs' prime brokerage business described as the worst month on record for regional equity long-short managers, according to a report by Bloomberg.
Asia hedge funds experienced significant losses in July due to a sharp reversal in AI-related stocks, as reported by Hedgeweek. Goldman Sachs' prime brokerage business estimated that these regional equity long-short managers suffered the worst month on record, with Asia-focused funds losing around 15% during the month. This decline followed a broad retreat from AI-linked stocks as investors questioned the sector's ability to sustain heavy capital spending.
South Korean memory chip maker SK Hynix and Japan's Kioxia Holdings witnessed steep declines, with SK Hynix's shares falling by over 30% and Kioxia's value nearly halving. The sell-off marked a dramatic reversal after AI beneficiaries had delivered extraordinary gains in the first half of the year, leading regional hedge funds to build significant positions in the sector.
Despite the turmoil, broader investment mandates and diversified portfolios helped some Asian technology suppliers weather the volatility more successfully.
Brief written by urgent.news from Hedgeweek's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- Asia multi-strategy hedge funds post sharp July losses as AI-driven selloff hits performance hedgeweek.com
- Foxconn's monthly revenue hits record in July on AI demand economictimes.indiatimes.com
- Foxconn July revenue hits record on AI demand techinasia.com
