Hedge Funds Post Worst Day Since August as AI Trade Unwinds
IXIC sits 29% above its 52-week low of $20,690.249.
Summary
Hedge funds had their worst session since August on October 15, with every broad strategy down more than 80 basis points — only the third such day in 2026. Asia-focused managers lost 2.6% in a single day and 6.8% in the first half of October, giving back more than half their gains since late June. The selling is concentrated in AI names: funds were net sellers of global AI equities from October 8-14, erasing purchases accumulated since 2025, after a hotter-than-expected inflation print raised the prospect of rates staying high. The damage is visible across markets — the Nasdaq fell 1.9% on October 14, CoreWeave dropped 15.5%, Oracle 8.8%, South Korea's KOSPI plunged 8%, and Taiwan saw a record $9.3 billion foreign outflow. Net selling hit -2.1 standard deviations versus the one-year average and hedge fund net leverage is now at historically low levels, which suggests much of the forced selling may be done — but quants tend to cut further as volatility rises, which can feed the turbulence. Asia's chip-heavy markets remain the pressure point.
At the time of this announcement, IXIC was trading at $26,713.03 on NASDAQ in the Technology sector. The 52-week trading range was $20,690.25 to $27,722.75. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Crypto Briefing.