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Alternative Market Briefing

Opalesque Roundup: AI unwind meets record capital: Hedge funds post worst day since Covid as allocators keep writing tickets

Monday, October 26, 2026

The AI unwind that began the previous week turned into a full-blown deleveraging this week. Goldman Sachs data showed global hedge funds suffering their widest one-day drawdown since the Covid crash, managers dumping technology stocks at the fastest pace since 2016, and short sales outpacing long purchases by roughly five to one. Yet the money kept coming: HFR put industry capital at a record USD 5.64 trillion, redemption notices fell to 1.62%, and CalPERS is looking at hedge funds again a decade after its noisy exit. Opalesque tracked every turn of the week in the daily Alternative Market Briefing, alongside new Opalesque Exclusives on DACH institutions, hedged equity and Europe's most granular multi-strategy platform.

Opalesque Exclusives this week

EXCLUSIVE - 22 October 2026DACH institutions push alternatives to 32.3% of portfolios as hedge funds make a comeback

Institutional investors in Germany, Austria and Switzerland now hold almost a third of their portfolios in alternative investments - and they are growing more confident about hedge funds. Opalesque breaks down where DACH allocators are adding, what is driving the shift and why hedge funds are back on the agenda in Europe's most conservative institutional market. ......................

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