AI's Cold Shoulder: Hedge Fund Stock Pickers Grapple with Tech Selloff
Oh, the irony! Hedge fund 'experts' — the very folks who claim to be ahead of the curve, often leveraging sophisticated tech themselves — are apparently getting a rude awakening from the AI-fueled market. It turns out even the most finely tuned algorithms and 'proprietary insights' couldn't fully insulate portfolios from a collective tech hangover. Perhaps their models forgot to factor in the sheer human panic when the shiny new AI toys start losing their luster.
Indeed, the numbers from Goldman Sachs paint a stark picture. A recent client note, sighted by Reuters, reveals that hedge fund stock pickers have endured one of their most challenging three-week stretches since the tumultuous first half of 2022. This downturn is directly attributed to the ongoing selloff in AI software-related tech stocks, underscoring how deeply interwoven these funds are with the very sector currently experiencing significant turbulence.
