News about hedge funds

Global hedge funds suffered steep losses last week as a sharp unwind of AI bets hit, with Asia-focused funds hardest hit. Goldman Sachs said global fundamental long-short funds, or stock pickers, lost money every day last week, losing 2.9% for the week to October 15, though they remain up 14.3% year to date. South Korea's semiconductor-heavy market bore the brunt, as the Kospi tumbled 8% on Thursday to a six-month low, while CoreWeave's bonds sold off, pushing yields above 15%. Analysts said the selloff reflected a crowded trade meeting hotter-than-expected US inflation data, which revived expectations of rate hikes, rather than a fundamental rejection of AI. Goldman also noted that Asia-focused stock pickers have erased more than half of their gains since their late-June peak.