Hedge Funds Suffer Losses from Overexposure in AI Trades Amid Market Volatility
Several hedge funds have seen their weakest performance in nearly a year due to overconcentration in artificial intelligence (AI) and technology trades amid increased market volatility. Systematic or quant funds, which rely on algorithmic strategies, lost about 25% of their gains from the start of 2026, while traditional stock-picking managers also reduced AI-related exposure.
Topics: artificial intelligence hedge funds quantitative trading volatility