Hedge Funds Cut Stock Teams After October Losses as Semiconductor Index Falls 12%

Balyasny and Engineers Gate cut stock teams after October losses, as the Philadelphia Semiconductor Index plunged 12% on Nov. 5, its steepest daily drop since 2020, amid a broad U.S. market selloff.

Balyasny removed equity long-short chief Anil Gondi and much of its internal long-short team. The firm lost 3.4% in October. Engineers Gate was down 5.5% and cut most of its Synthesis stock team, retaining five fundamental managers.

Hedge funds averaged a 3% loss for October. Citadel’s Wellington fund was among the few exceptions, rising 1.7% for the month and gaining 15.3% year to date. Samlyn sold nearly all its holdings outside financials, shifted its focus to global financial stocks and dismissed several senior analysts.

The market rout extended well beyond chipmakers. The S&P 500 fell 4.36% on Nov. 5, the Nasdaq Composite lost 5.52% and the Nasdaq 100 dropped 6.4%. The Nasdaq Composite stood 11% below its October record, putting it in a technical correction.