Major multi-strategy hedge funds in Asia recorded their largest drawdown of the year in July. A sharp sell-off in artificial intelligence-related stocks in Japan, South Korea, and China significantly eroded gains accumulated in the first half. Polymer Capital Management, with over 6 billion dollars in assets under management, fell 6.9 percent, shrinking its year-to-date return to 11.5 percent, partly due to its Japanese equity positions. Dymon Asia's multi-strategy fund, which manages 9 billion dollars, dropped 6.5 percent, while Pinpoint Asset Management's flagship fund declined 9 percent. In contrast, Arrowpoint Investment Partners limited its decline to 2.6 percent. Arrowpoint had reduced risk ahead of July after spotting signs of excessive leverage building in the market, which helped cushion the blow. According to Goldman Sachs estimates, the average return for Asia-focused equity hedge funds in July was negative 15.2 percent, the largest monthly decline on record.
Goldman Sachs Group Inc