Key Takeaways
- • Goldman Sachs reported that fundamental long-short hedge funds lost 2.9% in the week to October 15, 2026.
- • Asia-focused managers were particularly hard hit by the losses.
- • The drawdown followed the unwinding of crowded artificial intelligence trades, with AI stocks sold across markets.
- • Higher inflation and borrowing-cost concerns formed the macro backdrop to the sell-off.
Summary
Global hedge funds suffered losses as crowded artificial intelligence positions unwound, according to Opalesque Alternative Market Briefing, which cited Goldman Sachs. Goldman Sachs reported that fundamental long-short funds lost 2.9% in the week to October 15, with Asia-focused managers particularly hard hit.
The sell-off in AI stocks coincided with rising concerns about inflation and borrowing costs, which pressured crowded trades that many managers held in common.
The sell-off in AI stocks coincided with rising concerns about inflation and borrowing costs, which pressured crowded trades that many managers held in common.
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