Goldman Sachs says hedge funds investing in Asian equities are facing their worst monthly loss on record, following a sharp correction in artificial intelligence stocks. Long-short Asia equity funds focused on stock selection posted an average negative return of 18.6 percent in July, which if the trend continues would mark the largest monthly loss since data collection began. These funds were the world's best performers in the first half of the year, driven by investments in AI hardware stocks such as SK Hynix and Samsung Electronics, but the sell-off in AI shares has wiped out 21 percentage points from their year-to-date returns, down from a peak of around 40 percent on July 22. Hedge funds accelerated their selling for an eighth consecutive session through July 27, with cumulative reductions over the latest five trading days reaching a record high. The most heavily sold markets were Taiwan, South Korea, Japan, and China.
SK Hynix IncHedge funds selling AI hardware stocks, including SK Hynix, due to sharp correction in AI stocks, wiping out gains.
Samsung Electronics Co LtdHedge funds selling AI hardware stocks, including Samsung Electronics, due to sharp correction in AI stocks, wiping out gains.