Marshall Wace was among the hedge funds hit hard last month as investor worries over the sustainability of the AI boom triggered a sharp reversal in Wall Street’s tech rally. The $80bn hedge fund co-founded by billionaires Paul Marshall and Ian Wace saw its two key strategies fall in October. The Eureka strategy was down 5.4 per cent in October, trimming its year-to-date gain to 5.3 per cent. The data- and model-driven Tops strategy lost 3.6 per cent, remaining up 1.3 per cent for the year.
Global hedge funds in aggregate lost 3 per cent last month, according to specialist data provider Pivotal Path, with equity strategies faring worst as they bore the brunt of a tech sell-off. The Nasdaq 100 index tumbled into correction territory after falling 10 per cent from its October 6 record high, as a string of lacklustre tech earnings fuelled worries about how long it will take for the vast investments in AI to turn a profit.
Bond markets also endured a volatile month, particularly in the Eurozone, as oil prices climbed and France’s political crisis deepened. Macro hedge fund Graham Capital’s main human-led absolute-return strategy fell 1.8 per cent in October, taking year-to-date gains to 1.2 per cent.
Source: Financial Times Companies · Summarized by HeadlinesBriefing