Hedge funds hit by AI sell-off as Asia-focused managers lead losses
Global hedge funds suffered sharp losses this week as a sell-off in artificial intelligence-related stocks triggered widespread unwinding of positions, with Asia-focused managers among the hardest hit, according to a report by Reuters citing Goldman Sachs prime brokerage data. Global fundamental long-short equity funds recorded losses every day this week, falling 2.9% in the period to 15 October.…
Global hedge funds experienced sharp losses this week due to a sell-off in AI-related stocks, with Asia-focused managers among the hardest hit, according to a report by Reuters citing Goldman Sachs prime brokerage data. The decline in global fundamental long-short equity funds was 2.9% for the week ending 15 October, while Asia-focused funds fell 2.6% and technology-focused managers lost 2.0%.
The sell-off was driven by concerns over AI's potential returns and higher-than-expected US inflation data, which increased expectations of further interest rate hikes. Semiconductor stocks and companies involved in the AI supply chain were particularly affected, with the KOSPI index falling 8% and the Taiwan stock market declining over 3%.
Goldman Sachs noted the unusual extent of simultaneous losses across hedge fund strategies, with such declines occurring three times in 2026.
Brief written by urgent.news from Hedgeweek's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
