Global hedge funds hit by AI stock selloff, Asian managers lead losses
According to Goldman Sachs, global long-short funds lost money every day this week, and South Korea's KOSPI fell 8% to a six-month low.
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what happened
Global hedge funds posted steep losses this week after a sharp unwind of large AI positions. Funds focused on Asia were hit the hardest.
According to Goldman Sachs' prime brokerage unit, fundamental long-short funds lost money every day of the week, with losses of 2.9% for the period to October 15. They are still up 14.3% for the year. Asia-focused stock pickers have lost 6.8% in the first half of October. South Korea's KOSPI tumbled 8% on Thursday to close at a six-month low, while Taiwan shares lost more than 3%.
The selloff was fueled by hotter-than-expected US inflation data that raised expectations of further rate hikes. Investors increasingly doubt that massive AI spending will pay off soon. CoreWeave's bonds, meanwhile, pushed yields above 15%.
why it matters
The move matters for markets because forced reductions in semiconductor and AI stocks can amplify volatility in tech and Asian exchanges. Elevated inflation keeping borrowing costs high adds pressure on growth sectors.
market impact
Semiconductors and AI stocks: hedge fund selling pressures the sector; KOSPI and Taiwan under pressure
tags
instruments
sources
- Global hedge funds hammered by AI selloff this week, Asia managers lead losses — ru.tradingview.com, 16 October 2026 at 22:36 UTC
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