Key Takeaways
- • Global fundamental long-short equity funds fell 1.4% on Thursday, October 22, 2026, their worst session since July 16, according to Goldman Sachs prime brokerage data cited by Bloomberg.
- • Fundamental, systematic and multistrategy equity funds all lost more than 1% in the same session, the first time since the Covid pandemic that all three broad strategy groups declined by that magnitude in a single day.
- • Telecommunications, media and technology-focused managers recorded average losses of 2.7%, while the Nasdaq 100 fell 2.9%, its steepest decline since June.
- • Asia-focused fundamental long-short managers extended month-to-date losses to 9.3%, although the strategy remains up 14.2% year-to-date.
Summary
Global hedge funds suffered one of their broadest daily selloffs since the Covid-19 pandemic on Thursday, October 22, 2026, with fundamental, systematic and multistrategy funds all recording losses exceeding 1%, according to a Bloomberg report citing Goldman Sachs prime brokerage data.
Global fundamental long-short equity funds fell 1.4%, their worst session since July 16. Telecommunications, media and technology-focused managers recorded average losses of 2.7%. Systematic long-short funds declined 1.3%, their third-worst session since December 2023, while multistrategy platforms lost 1.9%, their second-largest daily decline since the April 2025 tariff-driven selloff.
The losses coincided with a sharp decline in US technology stocks amid renewed concerns over returns on artificial intelligence investment and inflationary pressures from rising oil prices. The Nasdaq 100 fell 2.9%, its steepest decline since June. Goldman's prime brokerage data showed that more than two-thirds of hedge funds ended the day in negative territory, with concentrated short positions coming under further pressure during the second half of the trading session.
According to Goldman, the simultaneous drawdowns across the three broad strategy groups marked the first time since the pandemic that all had declined by more than 1% in a single session.
Asia-focused fundamental long-short managers were also hit, extending their month-to-date losses to 9.3%, although the strategy remains up 14.2% year-to-date.
Global fundamental long-short equity funds fell 1.4%, their worst session since July 16. Telecommunications, media and technology-focused managers recorded average losses of 2.7%. Systematic long-short funds declined 1.3%, their third-worst session since December 2023, while multistrategy platforms lost 1.9%, their second-largest daily decline since the April 2025 tariff-driven selloff.
The losses coincided with a sharp decline in US technology stocks amid renewed concerns over returns on artificial intelligence investment and inflationary pressures from rising oil prices. The Nasdaq 100 fell 2.9%, its steepest decline since June. Goldman's prime brokerage data showed that more than two-thirds of hedge funds ended the day in negative territory, with concentrated short positions coming under further pressure during the second half of the trading session.
According to Goldman, the simultaneous drawdowns across the three broad strategy groups marked the first time since the pandemic that all had declined by more than 1% in a single session.
Asia-focused fundamental long-short managers were also hit, extending their month-to-date losses to 9.3%, although the strategy remains up 14.2% year-to-date.
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