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AI Downturn Rattles Top Asian Hedge Fund
6 Nov
Summary
- Aspex Management lost approximately 16% in October.
- The fund is still up 9% for the year through October.
- Asia was the worst-performing region for stock-picking hedge funds.
Aspex Management, a prominent Asian hedge fund based in Hong Kong, suffered an approximate 16% loss in October. This decline was primarily attributed to a significant selloff in artificial intelligence-related stocks that impacted global markets.
Despite the October losses, the $14 billion fund, which focuses on pan-Asian equities, has still achieved a 9% gain year-to-date through October. The broader market trend saw investors moving away from AI-linked companies amid growing concerns about the returns on substantial sector investments.
Markets in Asia were particularly hard-hit. The tech-heavy Korean KOSPI and Taiwanese benchmarks experienced substantial drops, as did China's Star 50 index. Globally, Asia was identified as the worst-performing region for equity long-short hedge funds in October, with Asian stock pickers falling by an average of 8.3%.
