Global Hedge Funds Face Severe Losses Amid AI Investment Declines

Global hedge funds experienced significant losses this week, particularly among those focusing on Asian markets. According to a memo from Goldman Sachs, funds employing long/short strategies saw a decline of 2.9% for the week ending October 15, despite a year-to-date gain of 14.3%. Hedge funds across various strategies faced sharp declines, with global equity selection funds down 0.9%, Asian-focused funds losing 2.6%, and technology-specific funds dropping 2%. Additionally, higher-than-expected U.S. inflation data intensified pressure on stocks related to AI supply chains.