economy
Goldman says hedge funds suffered worst underperformance vs S&P 500 in July in more than 20 years of data
Goldman says hedge funds suffered worst underperformance vs S&P 500 in July in more than 20 years of data.
TL;DR
- Hedge funds' top positions saw their worst underperformance versus the S&P 500 in over 20 years during July.
- July represented one of the sharpest hedge fund de-grossing periods in the last decade.
- Funds reduced positions in AI stocks, including semiconductors and mega-cap companies.
- Hedge funds, which were heavily invested in AI in the previous quarter, are now diversifying.
- Despite recent decreases, hedge fund gross leverage, net leverage, and AI exposure remain above longer-term averages.
- US equity long/short hedge funds have achieved a 10% return through mid-August.