By Nell Mackenzie
January 29, 2025 – 5:17 AM PST
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LONDON (Reuters) – Hedge fund stock-pickers lost billions of dollars on Monday in a rout in global technology shares sparked by the emergence of a low-cost Chinese artificial intelligence model, according to a Goldman Sachs trading update and industry figures on Tuesday.
Hedge funds that pick stocks based on company fundamentals rather than using algorithms to trade systematically were down 1.1% Monday, as markets sank, Goldman’s trading desk said, a significant one-day drop for funds that in a good year like 2024 make 15%.
Goldman Sachs does not reveal dollar figures for the size of the hedge funds its teams track, but data from hedge fund research group BarclayHedge suggest the losses from Monday’s sell-off could tally into the…
