Hedge funds retreat from AI as Goldman reports historic July underperformance
Goldman says hedge funds underperformed the S&P 500 by a historic margin in July and are starting to move away from AI after going "all in" at the start of the quarter. Reports say they are rotating into healthcare, financials and energy; Chinese funds have exited Nvidia and US hyperscalers.
Who is affected and how
- chief financial officer
- For hedge fund allocations, it is worth checking exposure to the AI theme and rotation risk.
Sources
- AI Trade Crushed in July as Hedge Funds Pivot Aggressively into Healthcare, Financials, and Energybiggo finance · Aug 20, 2026
- Hedge funds and mutual funds split on the AI trade - Goldmanseeking alpha · Aug 23, 2026
- Hedge funds and mutual funds split on the AI trade - Goldman | Seeking Alphaseekingalpha.com · Aug 23, 2026
- Goldman: hedge funds had historic underperformance vs S&P 500 in Julycnbc.com · Aug 21, 2026
- Goldman Sachs: Hedge funds took huge losses as AI rally lost momentum in July - Cryptewscryptews.com · Aug 21, 2026
- Chinese hedge funds rotate out of Nvidia and US hyperscalers in AI tradescmp · Aug 17, 2026
- Chinese hedge funds rotate out of Nvidia and US hyperscalers in evolving AI trade | South China Morning Postscmp.com · Aug 17, 2026
- Why TMT hedge funds are the year’s top performers — and the AI risks that could undo itpensions & investments · Aug 18, 2026
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