{
  "id": 14850552,
  "title": "AI selloff hammers hedge funds this week, Asia managers lead losses",
  "url": "https://urgent.news/2026/10/16/ai-selloff-hammers-hedge-funds-this-week-asia-managers-lead-losses-14850552",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-16T02:26:39.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/10/1556614/ai-selloff-hammers-hedge-funds-week-asia-managers-lead-losses"
  },
  "original_language": "en",
  "account": "This week, global hedge funds experienced significant losses due to the rapid unwinding of their AI-related investments, with Asia-focused funds suffering the most significant declines. Goldman Sachs reported that global long-short funds, which employ fundamental stock picking strategies, suffered daily losses throughout the week, with a combined loss of 2.9% for the week ending October 15. During the same period, these funds had gained 14.3% year-to-date. On Wednesday, hedge funds across different strategies showed a sharp retreat, with stock pickers globally down 0.9% and tech-focused funds off 2.0%. Systematic long-short managers and multi-strategy funds also experienced a decline of approximately one percent. The sharp sell-off was fueled by the release of hotter-than-expected US inflation data, which further increased expectations of additional rate hikes. This growing concern over AI spending's long-term viability, coupled with high inflation's impact on borrowing costs, has led to a decline in semiconductor and AI supply chain stocks. South Korea's KOSPI index plunged eight percent, hitting a six-month low, while Taiwan stocks also experienced a decline of more than three percent. Asia-focused stock pickers have lost 6.8% for the first half of the month, erasing more than half of their gains from their late-June peak, when they had risen more than 40% for the year, according to Goldman Sachs.",
  "summary": "TOKYO: Global hedge funds suffered steep losses this week, according to a Goldman Sachs prime brokerage note, battered by the violent unwind of a swathe of AI bets, with Asia-focused funds hit the hardest.",
  "key_points": [
    "Asia-focused hedge funds suffered the most significant declines",
    "Global long-short funds lost 2.9% for the week ending October 15",
    "AI spending's long-term viability concerns fueled the sell-off"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "AI selloff hammers hedge funds this week, Asia managers lead losses",
        "url": "https://urgent.news/2026/10/16/ai-selloff-hammers-hedge-funds-this-week-asia-managers-lead-losses",
        "published": "2026-10-16T02:18:21.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}