Key Takeaways
- • Aspex Management, a Hong Kong-based pan-Asian equity hedge fund with roughly $14 billion in assets, lost about 16% in October after an AI-led selloff hit the growth stocks it tends to own, according to Reuters as cited by Finimize.
- • The fund remained up about 9% for the year through October, so earlier gains absorbed part of the October drawdown.
- • Goldman Sachs data cited by Reuters showed Asian equity long-short hedge funds were the worst-performing regional group in October, down 8.3% on average versus a 2.5% global decline.
- • Aspex is a cornerstone investor in Hong Kong listings and has backed AI-adjacent firms including MiniMax and optical transceiver maker Zhongji Innolight, so any de-risking could weigh on those names and on IPO demand.
Summary
Aspex Management, one of Asia's largest hedge funds, lost about 16% in October after an AI-led selloff hit the types of stocks it typically holds, according to Reuters as reported by Finimize. The roughly $14 billion, Hong Kong-based stock picker focuses on pan-Asian equities, and the monthly decline was a rare, sharp drawdown for the firm.
October was broadly weak across the AI-heavy markets in which Aspex invests. Reuters cited declines in the Nasdaq Composite, Taiwan's benchmarks, South Korea's KOSPI and China's Star 50 index as investors questioned whether heavy AI spending would generate profits. Despite the October loss, Aspex was still up about 9% for the year through October, and those earlier gains cushioned part of the shock.
The broader hedge fund data points to regional weakness. Goldman Sachs data cited by Reuters showed Asia was the worst-performing region for equity long-short hedge funds last month, with Asian managers down 8.3% on average compared with a 2.5% global decline.
The episode carries implications for positioning. A drawdown of this size can prompt managers to tighten internal risk limits, reduce gross exposure and pay down leverage, typically by trimming positions in their most liquid holdings first. Redemptions would accelerate that process. Reuters notes Aspex has been a cornerstone investor in Hong Kong listings and has backed AI-adjacent companies including MiniMax and Zhongji Innolight. Any de-risking by the fund could add pressure to AI-linked stocks already experiencing outflows and reduce confidence in IPO demand and early aftermarket support.
October was broadly weak across the AI-heavy markets in which Aspex invests. Reuters cited declines in the Nasdaq Composite, Taiwan's benchmarks, South Korea's KOSPI and China's Star 50 index as investors questioned whether heavy AI spending would generate profits. Despite the October loss, Aspex was still up about 9% for the year through October, and those earlier gains cushioned part of the shock.
The broader hedge fund data points to regional weakness. Goldman Sachs data cited by Reuters showed Asia was the worst-performing region for equity long-short hedge funds last month, with Asian managers down 8.3% on average compared with a 2.5% global decline.
The episode carries implications for positioning. A drawdown of this size can prompt managers to tighten internal risk limits, reduce gross exposure and pay down leverage, typically by trimming positions in their most liquid holdings first. Redemptions would accelerate that process. Reuters notes Aspex has been a cornerstone investor in Hong Kong listings and has backed AI-adjacent companies including MiniMax and Zhongji Innolight. Any de-risking by the fund could add pressure to AI-linked stocks already experiencing outflows and reduce confidence in IPO demand and early aftermarket support.
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