Hedge Funds Net-Sold $20 Billion in Tech Stocks as AI Net-Long Positions Were Erased

Hedge funds were net sellers of about $20 billion in technology stocks over two weeks, and five trading days erased their net-long positions in AI stocks built since early 2025.

Walleye Capital lost 5.9% in October, its worst monthly performance since March 2020, and was down 6.8% year to date. The $17 billion multi-strategy manager also planned to restructure its business, cut its core equity long-short team and return some investor capital. TokenPost previously covered the firm’s planned capital return and equity changes.

Several hedge funds posted October losses: 2.3% at Millennium’s flagship fund, 5.4% at Marshall Wace’s Eureka fund, 2.4% at ExodusPoint and 2.3% at North Rock Capital. Point72 and Schonfeld also recorded losses.

The figures cover different periods: the reported fund returns are for October, the stock sales span two weeks, and the AI positioning change occurred over five trading days.