26.10.2026 Opalesque Roundup: AI unwind meets record capital: Hedge funds post worst day since Covid as allocators keep writing tickets
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
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