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Hedge funds suffer historic July setback as AI trade unravels

Hedge funds endured their sharpest monthly underperformance against the S&P 500 in more than two decades in July, as a reversal in AI stocks forced managers to cut positions and reduce exposure to…

  • Hedge funds saw historic July decline vs. S&P 500
  • AI stocks' poor performance forced managers to cut positions
  • Diversification away from AI reduced exposure to semiconductors

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