Some of Asia's largest multi-strategy hedge funds posted their steepest monthly losses of the year in July as a sharp selloff in artificial intelligence-linked stocks across Japan, South Korea and China wiped out gains built during the first half of 2026, according to Reuters, citing sources familiar with the funds' performance.
The decline came as investor sentiment towards AI-related companies weakened amid concerns over technology spending and rising geopolitical tensions in the Middle East. The resulting selloff in semiconductor stocks hit major Asian chipmakers, reversing one of the year's strongest investment themes.
