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Elliott warns of major market downturn as hedge fund returns lag

Reported · Written up by our desk · Equity Funds

Elliott has warned that mounting financial risks, excessive leverage and speculation surrounding artificial intelligence could trigger a severe market correction, as the $80bn hedge fund reported returns of less than 2% for the first nine months of 2026, according to a report by The Wall Street Journal. In an October investor letter, the firm, led by Paul Singer and Jonathan Pollock, compared current market conditions to the speculative excesses preceding the Great Depression, highlighting concerns over US fiscal deficits, persistent inflation, private credit exposure and debt-funded AI invest

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