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Goldman strategists said July marked one of the sharpest hedge fund de-grossing episodes of the past decade
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Hedge funds posted their worst monthly performance relative to the S&P 500 in more than two decades in July as popular artificial intelligence positions unwound, according to CNBC, citing a Goldman Sachs $GS report.
"Our Hedge Fund VIP list of the most popular long positions suffered its worst 1-month underperformance vs. the S&P 500 in more than 20 years of history, and July marked one of the sharpest hedge fund de-grossing episodes of the past decade," Goldman strategists led by Ben Snider said, according to CNBC. The bank added that funds reduced exposure across the AI space, with semiconductors and the majority of large-cap technology names among the areas where positions were cut.
