Follow-Up: Trend Hedge Funds Post Worst Week Since 2024: Goldman Reports Systematic Funds Down 2% and $20 Billion in Tech Selling Over Two Weeks
Trend-following hedge funds suffered their worst weekly performance since 2024 last week, according to a Goldman Sachs note to clients seen by Reuters on October 26, as concern about when heavy artificial-intelligence spending will pay off ignited volatility across stocks and bonds. The Nasdaq 100 fell 5.5% last week, its biggest weekly drop since April 2025, when President Donald Trump's 'Liberation Day' tariffs roiled world markets.
Systematic long-short funds, whose algorithms ride market trends, fell 2% in their worst week since 2024, while fundamental long/short strategies drew down another 1.1%, Goldman said. For October so far, fundamental long/short strategies are down 3.8% (still up 8.8% this year) and systematic strategies are down 1.1% (up 18.7% this year). Meta led last week's slide in part: the company reported strong earnings but said it would need to raise more capital for its SI investments, and its shares fell 10% on the week. Bond markets were also volatile, as investors sought the relative safety of U.S. Treasuries while selling the debt of more fragile economies such as France.
Single stocks collectively saw the largest de-grossing — a general pulling back in positions — since late July, U.S. equities have been net sold for a third straight week and in four of the last five, and Goldman's prime brokerage desk reported $20 billion in selling of technology stocks over the last two weeks, close to July's roughly $23 billion unwind, the note said. GSM reported on October 16 that the SI selloff had already hammered global hedge funds that week, with fundamental long-short funds down 2.9%; the new figures show the adjustment around SI valuations continued into late October.
Source: GSM · USA (original Chinese edition)
Photo: 图：位于 New York 的高盛全球总部大楼 200 West Street（资料图）。摄影：Rhododendrites，CC BY-SA 4.0，经 Wikimedia Commons。 / The Goldman Sachs global headquarters at 200 West Street in New York (file photo). Photo: Rhododendrites, CC BY-SA 4.0, via Wikimedia Commons.
- 2026-10-16SI Selloff Hammers Global Hedge Funds: Goldman Says Fundamental Long-Short Funds Lost 2.9% This Week, With Asia Funds Hit Hardest
- 2026-10-26Follow-Up: Trend Hedge Funds Post Worst Week Since 2024: Goldman Reports Systematic Funds Down 2% and $20 Billion in Tech Selling Over Two WeeksThis story
