Hedge funds face broadest decline since Covid pandemic after stock rout

hedge funds: Hedge funds are actively managed investment vehicles that use strategies such as fundamental long/short equity, systematic trading, and multi-strategy portfolio management. In the reported selloff, all three broad equity-strategy groups declined more than 1% on the same day, marking one of the sector’s broadest daily setbacks since the Covid-era market turmoil. Positioning: More than two-thirds of hedge funds ended the session lower, while concentrated short positions were squeezed later in the trading day. Recent trend: The losses followed broader unwinding in technology and artificial-intelligence-related positions, which had recently pressured Asia-focused and technology-focused funds. Market impact: Goldman Sachs reported that the decline affected fundamental long/short, systematic long/short, and multi-strategy hedge funds simultaneously.