Hedge Funds Log Widest Daily Drawdown Since Covid; TMT Funds Down 2.7%
SumitGup · x · 2026-10-24
- Goldman Sachs' prime brokerage data shows global hedge funds suffered one of their broadest daily declines since the pandemic: fundamental long/short funds fell 1.4% on Thursday, TMT-focused funds dropped 2.7% on average, and more than two-thirds ended the day in the red.
- Jefferies data: clients net-sold over $1B of tech stocks on 7 of the past 10 sessions, with the 20-day rolling net selling at roughly -$11B — among the most extreme tech selloffs in two years.
- The author argues the selloff is closer to the bottom than many think, and that funds getting hit on both sides of their trades explains recent market irrationality.
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