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Thursday, 6 August 2026

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EDITOR'S PICKAsian Hedge Funds Hit by Sharp July AI Stock Selloff

By Rebecca Hsu4 min read

Hong Kong, 5 August 2026 – Several of Asia’s largest multi-strategy hedge funds suffered their steepest monthly losses of the year in July as a sharp reversal in artificial intelligence-linked stocks erased part of the gains accumulated during the first half of 2026.

The selloff swept through semiconductor and technology shares across South Korea, Japan and China. Concerns over the sustainability of AI spending, combined with market uncertainty arising from the Middle East conflict, prompted investors to reduce exposure to positions that had previously delivered strong returns.

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Author

  • Rebecca Hsu is a Senior Economist and Lead Analyst for The Ledger Asia, focusing on the rapidly evolving financial landscapes of East and Southeast Asia. With a background in sovereign risk assessment and emerging market trends, Rebecca provides sharp commentary on trade dynamics, monetary policy, and the digital economy's impact on regional growth.

    Formerly a strategic advisor for major financial institutions in Hong Kong, she excels at translating complex macroeconomic shifts into actionable insights for investors and policymakers. Her work at The Ledger Asia centers on China’s economic transition and the burgeoning manufacturing hubs of ASEAN, ensuring readers stay ahead of Asia’s shifting financial tides.