SI Selloff Hammers Global Hedge Funds: Goldman Says Fundamental Long-Short Funds Lost 2.9% This Week, With Asia Funds Hit Hardest
New York — Global hedge funds suffered steep losses this week in the violent unwind of artificial-intelligence bets, with Asia-focused funds hit the hardest, according to a Goldman Sachs prime brokerage note reported by Reuters on October 16. Investors are increasingly questioning whether massive SI spending can pay off anytime soon, as elevated inflation keeps borrowing costs high.
Global fundamental long-short funds — stock pickers — lost money every single day this week, with losses for the week to October 15 coming to 2.9%, the note said. For the year to date, those funds are still up 14.3%. On Wednesday alone, stock pickers globally lost 0.9%; Asia-focused managers were down 2.6% and technology-focused funds were off 2.0%, while global systematic long-short managers and multi-strategy funds also declined roughly 1%.
Goldman Sachs said that from COVID through the end of 2025, the three broad strategies never all fell more than 80 basis points on the same day, but that this has now occurred three times this year: on February 4, July 28 and October 15.
Semiconductor-heavy markets bore the brunt of the selloff. South Korea's KOSPI tumbled 8% on Thursday to close at a six-month low, while Taiwan stocks lost more than 3%. Asia-focused stock pickers have lost 6.8% in the first half of October and have erased more than half of their gains from their late-June peak, when they were up more than 40% for the year, according to Goldman Sachs.
Source: GSM · USA (original Chinese edition)
Photo: 图：纽约证券交易所大楼与华尔街路牌。图片来源：Carlos Delgado，Wikimedia Commons，CC BY-SA 3.0。Photo: The New York Stock Exchange building and a Wall Street sign. Image: Carlos Delgado, via Wikimedia Commons, CC BY-SA 3.0.
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