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Why the AI Tech Selloff Hit Hedge Funds Across Three Strategies
On October 22, 2026, Goldman Sachs tracked fundamental equity long short, systematic and multi strategy funds all lost more than 1%—the first simultaneous drop of that size since the COVID era rout. Global fundamental long short funds were down 3.8% in October but remained up 8.8% year to date, according to Goldman...
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Key takeaways
- On October 22, 2026, Goldman Sachs tracked fundamental equity long short, systematic and multi strategy funds all lost more than 1%—the first simultaneous drop of that size since the COVID era rout.
- Global fundamental long short funds were down 3.8% in October but remained up 8.8% year to date, according to Goldman Sachs estimates cited by Reuters.
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openai.comCreate a landscape editorial hero image for this Studio Global article: How did the renewed technology selloff lead global hedge funds to their broadest losses since the COVID-era rout on October 22, 2026, includ. Article summary: The renewed AI-technology selloff spread across hedge-fund strategies: on October 22, 2026, Goldman Sachs’ fundamental equity long-short, systematic, and multi-strategy categories all lost more than 1%—the first such sim. Topic tags: general, news, general web, user generated. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts w
On October 22, 2026, a renewed technology selloff pushed all three major hedge-fund strategies tracked by Goldman Sachs down more than 1% in one day. The simultaneous losses—across fundamental equity long-short, systematic and multi-strategy funds—had not occurred since the COVID-era market rout. 1 Investor doubts about the cost of the AI buildout, sharpened by Meta’s plans to raise funds for spending, helped drive the selloff.
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Why the selloff spread beyond Meta
Meta said it would issue a new class of non-voting shares to help fund AI spending and other priorities. Its shares fell 7% on October 22, their largest drop since July. 2 The announcement brought attention to the financing needs behind the AI buildout, while investors also sold other companies associated with the trade.
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The declines reached major technology stocks and indexes. Nvidia fell 4%, and the Nasdaq Composite dropped 2.6%—its steepest decline since June 5, according to Reuters. 3 The broad market move helps explain why losses showed up across different hedge-fund strategies, rather than being confined to one company or one type of portfolio.
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A selloff that was already under way
The October 22 losses followed a difficult stretch for hedge funds. Reuters reported on October 16 that global fundamental long-short funds had lost money on each trading day that week, with losses totaling 2.9% through October 15. Asia-focused funds were among the hardest hit during that earlier period. 44
That context matters: the October 22 drop was not the first sign of stress, but a further blow during an ongoing unwind of AI-related bets. The reporting links the pressure to a reassessment of technology stocks and the scale of AI investment. 1
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What the monthly and year-to-date figures show
Global fundamental long-short funds, or stock pickers, were down 3.8% in October while remaining up 8.8% year to date, based on Goldman Sachs estimates cited by Reuters. 1 The figures describe different time periods: the monthly loss cut into earlier gains, but did not erase the reported year-to-date advance.
Those numbers apply to global fundamental long-short funds, not to every hedge fund or to the three strategy categories’ combined performance. Reuters reported the simultaneous daily losses separately from the monthly stock-picker return. 1
What the COVID-era comparison means
The comparison is specific: October 22 was the first time since the COVID pandemic that all three Goldman Sachs-tracked strategy categories lost more than 1% on the same day. 1 It does not mean that every hedge fund lost money, or that each category individually recorded its worst single-day result since COVID.
The episode shows how a concentrated market reassessment can affect funds with different approaches when their results are exposed to the same broad technology selloff. The available reporting establishes the simultaneous losses and the AI-spending concerns behind the market move; it does not verify every claim about hedge-fund positioning or individual investors’ views.
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On October 22, 2026, Goldman Sachs tracked fundamental equity long short, systematic and multi strategy funds all lost more than 1%—the first simultaneous drop of that size since the COVID era rout.
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On October 22, 2026, Goldman Sachs tracked fundamental equity long short, systematic and multi strategy funds all lost more than 1%—the first simultaneous drop of that size since the COVID era rout. Global fundamental long short funds were down 3.8% in October but remained up 8.8% year to date, according to Goldman Sachs estimates cited by Reuters.