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Asia equity long-short funds set for worst monthly losses on record

Reuters, citing a Goldman Sachs note, links the slide to a rapid unwind of AI-driven positions after a sharp sell-off in AI-related stocks.

Reported · Written up by our desk · Hedge Funds

Asia-focused equity long-short hedge funds are on track to post their largest monthly losses on record, after a sharp sell-off in artificial intelligence related stocks triggered a rapid unwinding of one of the season's most profitable investment themes, according to Reuters citing a Goldman Sachs note.

Hedgeweek reported on the assessment, describing how the AI sell-off pressured returns across the region's long-short strategies as investors reduced exposure quickly.

The report suggests that performance in Asia hedge funds is being driven by the pace of that thematic unwind, rather than idiosyncratic company news across a broad set of holdings.

As a result, the funds are heading toward what would be their worst monthly period in recorded history, based on Goldman Sachs' outlook relayed by Reuters.

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