Key facts
- Large Asian multi-strategy hedge funds experienced significant drawdowns in July.
- The drawdowns were attributed to a sharp selloff in AI stocks.
- The affected markets included Japan, South Korea, and China.
- Some funds saw losses between 3% and 9% for the month.
- These losses erased gains accumulated in the first half of the year.
Several large multi-strategy hedge funds based in Asia recorded their most substantial monthly drawdowns of the year in July. This downturn was primarily driven by a significant selloff in artificial intelligence-related stocks across key Asian markets, including Japan, South Korea, and China. The sharp decline in these AI stocks led to the erasure of gains that had been accumulated during the first half of the year. Reports indicate that some major funds experienced losses ranging from 3% to 9% during the month of July.