Hedge funds just had their worst month vs. the S&P 500 in 20 years
The AI unwind hit active managers hard in July: Goldman's Hedge Fund VIP basket of the most popular longs posted its worst one-month underperformance versus the S&P 500 in over two decades, in one of the sharpest de-grossing episodes of the decade. Funds slashed semiconductors and mega-cap AI names they'd piled into at record crowding. Long/short equity funds were still up roughly 10% by mid-August.