Tech Stock Position Unwinding Amplifies Volatility as Some Fund Strategies' Gains Near Zero

Global technology stock losses are pushing hedge funds into another round of adjustments, with some strategies’ year-to-date gains nearing zero as AI-related trades reverse. According to Odaily, several large funds are reducing leverage and cutting investment teams, while market concerns grow that concentrated position unwinding could further amplify volatility. Goldman Sachs data showed that technology-focused equity long-short funds lost more than 4% on Thursday, bringing their year-to-date returns close to zero. In June, their cumulative returns had reached 24%. Losses extended beyond technology-focused strategies. Global fundamental equity long-short funds fell an average of 1.3% on Thursday, while multi-strategy funds declined 1.4%, according to Goldman Sachs data.