hedge funds

Hedge fund borrowing triples since 2020, enriching banks

Hedge fund borrowing from banks has tripled since 2020. Lending to the largest trading firms has become one of the fastest-growing businesses on Wall Street, according to a Financial Times report published Thursday, October 8. Revenues from equity and fixed-income…

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IMF warns hedge funds’ leverage could amplify market shocks

Hedge funds have more than tripled in size over the past ten years. According to the International Monetary Fund, gross assets rose from $4 trillion in 2013 to about $13 trillion in early 2026, and most of that growth came…

Hedge funds unwinding bets fuel French bond rout

This week's slide in French government bonds was made worse by hedge funds pulling out of crowded positions in a hurry. The forced selling produced swings that European markets had trouble absorbing, and a senior Fidelity International bond manager said…

Fed and BoE probe banks over Jane Street’s $15B loss

The Federal Reserve and Bank of England have begun questioning global banks about their exposure to large trading firms following a market shock in July that left Jane Street Capital with a $15 billion loss, according to a Financial Times…

Hedge funds turn net long on yen for first time since July 2025

Hedge funds have flipped bullish on the Japanese yen for the first time since July 2025, building roughly ¥251 billion ($1.6 billion) in long positions, according to Commodity Futures Trading Commission data released Friday. The shift — from a net…

BIS cites hedge fund meltdown in new warning on leverage

JPMorgan Chase has ended its lending relationship with Situational Awareness, the AI-focused hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, after the fund lost roughly 67% of its value in July, according to Reuters. The move came as the…

Hedge funds bet yen will strengthen past 150 by year-end

Hedge funds are piling into options that profit from a stronger yen, wagering that the dollar-yen pair will fall below 150 by the end of 2026, with some traders targeting levels as low as 140 through longer-dated derivatives.

Hedge funds push bullish oil bets to May high amid US-Iran clashes

Hedge funds have pushed their bullish wagers on Brent crude to the highest level in more than three months as renewed military clashes between the United States and Iran threaten to choke off energy flows through the Strait of Hormuz.

Griffin says Citadel unwound 80% of risk from AI fund fire sale

Ken Griffin told Citadel clients on Friday that his firm has unwound more than 80% of the aggregate risk from the portfolio it acquired from Leopold Aschenbrenner's Situational Awareness hedge fund, conducting more than 100 block trades representing over $4…

Central bank crisis tools may be fueling the next blowup, WSJ warns

Central banks may be inadvertently encouraging excessive leverage and subsidizing government borrowing through the very emergency facilities they created to prevent market meltdowns, according to an analysis published Saturday by The Wall Street Journal News Corp.

Singapore touts AI edge as Hong Kong woos funds with zero tax on carry

The competition between Asia's two premier financial hubs has entered a new phase, with Singapore leaning on its access to advanced artificial intelligence tools to retain investment managers even as Hong Kong rolls out sweeping tax incentives for fund professionals.

Jane Street took $15 billion hit in July from Situational Awareness exposure

Jane Street, one of Wall Street's most powerful trading firms, suffered approximately $15 billion in losses in July from its exposure to AI-focused hedge fund Situational Awareness, according to a Reuters exclusive citing two people familiar with the matter.

Tech hedge funds post worst month since 2008 amid AI stock rout

Technology-focused hedge funds suffered their worst monthly performance since the depths of the 2008 financial crisis in July, as a brutal sell-off in artificial intelligence stocks triggered forced liquidations and wiped billions from some of the industry's most prominent names.

Hedge funds slash yen short bets after US-Japan intervention

Hedge funds sharply reduced their bearish wagers against the Japanese yen following a rare coordinated intervention by the United States and Japan, easing fears of an imminent repeat of the market turmoil that rocked global assets in mid-2024.

JPMorgan warns tech trade may shift to retail after hedge fund rout

The July rout in artificial intelligence and semiconductor stocks sent shockwaves through the hedge fund industry, with JPMorgan Chase reporting that global hedge funds gave back nearly 3% of their gains for the month as crowded technology bets reversed in…

Asia’s top multi-strategy hedge funds post biggest 2026 losses after July AI selloff

Several of Asia's largest multi-strategy hedge funds suffered their biggest monthly losses of the year in July, as a brutal selloff in AI-linked semiconductor stocks across Japan, South Korea, and China eroded gains built up during a stellar first half…

Jupiter quant fund loses 43% in three weeks amid AI selloff

A hedge fund managed by Hong Kong-based Jupiter Research Capital (Asia) Ltd. lost more than 40% of its value in just over three weeks this month, becoming one of the most visible casualties of a bruising selloff in artificial intelligence-linked…

Asia hedge funds head for record loss as AI bets unravel

Asia-focused equity long-short hedge funds are on track for their worst month ever, falling 18.6% on average through July 28, as crowded bets on artificial intelligence chip stocks reversed with unusual speed, according to Goldman Sachs The Goldman Sachs Group,…

Bank of England probes prime brokers’ Asian AI stock exposure

The Bank of England's Prudential Regulation Authority has launched a review of London-based prime brokers' exposure to Asian artificial intelligence stocks, amid growing concerns that leveraged hedge fund positions could trigger cascading losses reminiscent of the 2021 Archegos Capital collapse.

Goldman, JPMorgan issue margin calls as AI sell-off deepens

Credit default swap spreads tied to some of the world's largest technology companies have surged to multi-year highs, reflecting deepening investor anxiety about the debt being accumulated to fund artificial intelligence infrastructure. The widening spreads, combined with a formal warning…

Hedge funds post best first half in years on AI boom

Global hedge funds delivered an average return of 7% in the first half of 2026, their strongest opening-half performance since 2021 and well above the 10-year average of 4.1%, according to a Goldman Sachs note published Monday. The gains mark…

Wall Street banks demand collateral from hedge funds as AI stock rout deepens

Wall Street banks have begun demanding additional collateral from hedge funds as a weekslong selloff in artificial intelligence and semiconductor stocks deepens, sparking growing risk aversion across global markets, the Financial Times reported on Tuesday.

GIC to deploy $30 billion into hedge funds over three years

Singapore's sovereign wealth fund GIC announced plans to invest an additional $30 billion into hedge funds over the next three years, marking one of the largest capital injections into the industry by a state investor. The move comes as the…

Hedge funds post best quarter of the decade with 12.3% Q2 return

Hedge funds delivered their strongest quarterly performance of the decade in the second quarter of 2026, posting a weighted average return of 12.3% as artificial intelligence drove a powerful rebound in equity markets, according to data from Citco's Quarterly Hedge…

Hedge funds eye Singapore exit for Hong Kong amid tax rivalry

A growing number of hedge fund firms and asset managers are actively considering shifting staff and offices from Singapore to Hong Kong, driven by Hong Kong's sweeping tax reforms that promise to eliminate levies on carried interest and performance fees…

Hedge funds add bullish oil bets at fastest pace in a decade

Money managers piled into bullish bets on Brent crude at the fastest pace in almost ten years as the collapse of the U.S.-Iran ceasefire sent shipping through the Strait of Hormuz to near-zero, according to weekly positioning data from ICE…

Hedge funds bet heavily against manufacturing stocks amid Strait of Hormuz crisis

Global hedge funds bet heavily against manufacturing stocks in June, more than in any other sector, as investors grew increasingly concerned about supply-chain disruption from renewed tensions around the Strait of Hormuz, according to data from Hazeltree released on Wednesday.

BIS warns retail investor surge could amplify recession

The Bank for International Settlements has warned that surging retail investor participation in equity markets, combined with highly leveraged hedge funds operating in bond markets, poses heightened risks to global financial stability and could amplify the economic fallout from a…

BIS warns high debt leaves nations exposed to bond crises

The Bank for International Settlements has warned that elevated government debt levels are leaving countries increasingly vulnerable to sudden bond market turmoil driven by hedge fund fire sales, echoing the 2022 UK gilt crisis that erupted under former Prime Minister…

Chinese hedge funds warn AI ‘super bubble’ is nearing collapse

Two of China's most prominent hedge fund managers issued stark warnings this week that the global artificial intelligence stock boom has entered dangerous territory, adding to a chorus of bearish voices as technology shares stumbled through a volatile week of…