Major Asian multi-strategy hedge funds suffered sharp losses in July 2026 as an artificial intelligence and tech stock selloff erased early-year gains. Declines across Japan, South Korea, and China tech shares dragged platform funds lower, though diversification helped them outperform pure stock-picking peers during the market rout.

Asia-focused hedge funds lost an average 18.6% in July 2026, their worst month on record, as crowded AI and semiconductor trades reversed

Balyasny lost 1.5% and Verition fell 1.1% in July 2026 as a broad AI stock selloff hit hedge funds with exposure to chipmakers and hyperscalers.