Aspex Management, a major Asian hedge fund, suffered a 16% loss in October as a selloff in AI-linked stocks rattled global markets. Despite this sharp drop, the $14 billion fund remains up 9% this year. Investors dumped tech shares amid growing worries about returns on massive investments in the sector.
HONG KONG, Nov 6 (Reuters) - One of Asia's largest hedge funds, Aspex Management, posted a loss of about 16% in October when a selloff in AI-linked stocks rattled global markets, a person with knowledge of the matter said.
It marked one of the biggest monthly drawdowns for the $14 billion Hong Kong-based fund, according to the source.
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But the fund, focused on pan-Asian equities, is still up 9% this year through October, the source said.
Aspex Management, founded by former Och-Ziff Capital Management Asia equities head Hermes Li, did not immediately respond to a Reuters request for comment.
During October, investors dumped AI-related stocks from chipmakers to hyperscalers amid growing skepticism about whether they will gain sufficient returns from massive investments in the sector.
The selloff has gained momentum this month after big wins for the Democrats in the US midterm elections fuelled fears of more regulatory scrutiny for the industry.
Asia was the worst-performing region last month among the equity long-short hedge funds tracked by Goldman Sachs. Asian stock pickers fell 8.3% on average, compared to a 2.5% decline globally.
Reporting by Summer Zhen; Editing by Edwina Gibbs
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Summer Zhen is a Hong Kong-based correspondent for Reuters, specializing in hedge funds and financial markets in Asia. She has over a decade of experience in financial journalism and the finance industry. Before joining Reuters, Summer was an investor relations professional at a hedge fund and worked as a business reporter for the South China Morning Post. She was the winner of Best Young Reporter at the 2014 Hong Kong News Awards.