Pretty crazy Reuters piece on the global selloff.
- October 22 marked the 1st time since the COVID crash that long/short, systematic, and multi-strategy hedge funds tracked by Goldman Sachs ALL lost more than 1% in a single day.
- Tech-focused hedge funds: down ~10% in October
- Asia-focused hedge funds: down ~9% in October
There’s separate interviews where Citadel/JP Morgan have been saying retail has been the ones buying the dip in semiconductor, neocloud, and memory stocks.
And the stocks bought by most retail were $NBIS, $SNDK, and $TSM.
Reuters stated this downturn triggered institutional deleveraging events among hedge funds.
Quite the divergence, I do think there’s been a ton of irrational selling now, hedge fund deleveraging seems to be a major contributor.