October was a month to forget as AI rout hit returns
QQQ•JPMorgan estimated global hedge funds lost 2.6% from October 1 to 29 and would likely finish the month down about 3.5%, as tech-stock losses weighed on returns.
1. Hedge funds fall
JPMorgan estimated global hedge fund losses of 2.6% between October 1 and 29, and said they would likely be close to 3.5% for October including the final day. It said AI and technology stocks drove much of the losses, while broader U.S. and European indexes were flat to higher.
2. Strategies and markets
Systematic long-short hedge funds fell 3.6% and fundamental long-short funds fell 3.5%, Goldman Sachs said. It was the first month since its records began in 2016 that both groups fell by more than 3%. The Nasdaq 100 dropped 6.6%, while the 10-year Treasury yield fell 36 basis points, its largest monthly decline since December 2023.
