Some of Asia's largest multi-strategy funds suffered their steepest drawdowns of the year in July as a sharp selloff in artificial intelligence-linked stocks across Japan, South Korea and China wiped out a sizable portion of the gains accumulated in the first half of 2026.
The same positions that had powered returns earlier this year became a drag in July, as rising concerns over AI spending and the Middle East conflict triggered a broad selloff in semiconductor stocks, hitting some of Asia's biggest chipmakers.
