Key Takeaways
- • Goldman Sachs' brokerage division reported a significant decline in global hedge funds on October 23, 2026, with all three major stock strategies falling more than 1% at once for the first time since the COVID-19 pandemic began.
- • Fundamental long-short funds closed down 1.4%, according to the primary source's account of the Goldman Sachs report.
- • The Nasdaq 100 fell 2.9%, its largest drop since June, driven by investor worries over the profitability of heavy artificial intelligence spending.
- • Super Micro Computer Inc (SMCI) has a GF Score of 85/100, a P/S ratio near 0.56, and $24.44 million in insider sales over the past three months with no insider purchases reported.
- • Eight gurus hold SMCI positions, with seven adding and two trimming in recent quarters, per GuruFocus data.
Summary
Goldman Sachs' brokerage division reported on October 23, 2026 that global hedge funds suffered a significant decline, one of the largest drops since the COVID-19 pandemic. According to the report, all three major stock strategies fell more than 1% simultaneously for the first time since the pandemic began, with fundamental long-short funds closing down 1.4%.
The downturn coincided with a sharp selloff in equities. The Nasdaq 100 index fell 2.9%, its largest decline since June, driven by concerns about whether substantial investments in artificial intelligence will prove profitable. The environment has been particularly difficult for technology companies, including Super Micro Computer Inc, a San Jose, California-based maker of high-performance servers, storage systems and networking devices, which carries a market capitalization of approximately $22.15 billion.
The source article, published by GuruFocus, examined SMCI's valuation and ownership data amid the volatility. The company's Price-to-Sales ratio of approximately 0.56 is well below its historical median. Because SMCI is currently unprofitable and cash-flow-negative, the article notes that earnings-based metrics such as P/E are not meaningful; the trailing P/E of 10.26 compares with a 5-year median of 19.39. GuruFocus's GF Value of $91.91 implies roughly 63.3% upside from the $33.72 share price, though the publication cautions that this should be treated as a directional indicator rather than a precise target.
SMCI's GF Score of 85/100 reflects strong growth (10/10) and profitability (8/10) ratings, offset by a weak valuation rank (2/10). Financial strength was rated 7/10 and momentum 8/10. GuruFocus data shows eight gurus holding the stock, with seven adding to positions and two trimming. Insider activity was a notable concern, with $24.44 million in insider sales over the past three months and no insider purchases reported.
The downturn coincided with a sharp selloff in equities. The Nasdaq 100 index fell 2.9%, its largest decline since June, driven by concerns about whether substantial investments in artificial intelligence will prove profitable. The environment has been particularly difficult for technology companies, including Super Micro Computer Inc, a San Jose, California-based maker of high-performance servers, storage systems and networking devices, which carries a market capitalization of approximately $22.15 billion.
The source article, published by GuruFocus, examined SMCI's valuation and ownership data amid the volatility. The company's Price-to-Sales ratio of approximately 0.56 is well below its historical median. Because SMCI is currently unprofitable and cash-flow-negative, the article notes that earnings-based metrics such as P/E are not meaningful; the trailing P/E of 10.26 compares with a 5-year median of 19.39. GuruFocus's GF Value of $91.91 implies roughly 63.3% upside from the $33.72 share price, though the publication cautions that this should be treated as a directional indicator rather than a precise target.
SMCI's GF Score of 85/100 reflects strong growth (10/10) and profitability (8/10) ratings, offset by a weak valuation rank (2/10). Financial strength was rated 7/10 and momentum 8/10. GuruFocus data shows eight gurus holding the stock, with seven adding to positions and two trimming. Insider activity was a notable concern, with $24.44 million in insider sales over the past three months and no insider purchases reported.
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