The Perfect Storm That Clobbered Hedge Funds
Bloomberg's Nishant Kumar and Michael Ball analyze the historic October losses across hedge funds and multi-strategy platforms. They examine how crowded AI trades, extreme leverage, and mechanical selling fueled sharp market drawdowns following the US midterm elections. The discussion also covers shifting equity supply dynamics ahead of the Anthropic IPO and growing operational bottlenecks facing neocloud data centers.
- Research from PivotalPath shows the top ten multi-strategy hedge funds held $2.2 trillion in gross exposure backed by just $350 billion in equity capital. Read →
- Millennium dropped 2.3% in October, a sharp hit for an operation that usually annualizes returns near 14%. Read →
- Multi-strategy hedge funds run hundreds of semi-autonomous pods instead of relying on a single star manager to direct the balance sheet. Read →
- Iren saw its stock fall more than 70% after Microsoft demanded a mid-build chip upgrade, showing that new silicon cycles outpace data center construction schedules. Read →
- Options dealers trapped in negative gamma accelerated the post-midterm Thursday crash by dumping underlying equities as technical support failed. Read →