Global Long/Short Equity Funds Fall 1.4% in Worst Day Since July
Key Facts
Core global long/short equity funds fell 1.4% at Thursday’s close, their worst daily performance since July 16, according to data Bloomberg cited from Goldman Sachs’ prime brokerage desk. Losses extended to funds focused on communications, media and technology, which fell 2.7% on average. Goldman Sachs said the three broad equity strategies each lost more than 1% on the same day for the first time since the Covid pandemic. Systematic equity funds and multi-strategy platforms also posted losses, showing that pressure had spread across investment styles. The moves came during a stock selloff, as technology and AI shares declined.
Global systematic long/short funds fell 1.3%, their third-worst day since December 2023, according to Goldman Sachs data cited by Bloomberg. Multi-strategy fund platforms dropped 1.9%, their second-worst day since the tariff selloff in April 2025. For core long/short funds, Thursday’s loss was the worst since July 16, while funds focused on communications, media and technology fell 2.7% on average. The figures show that the decline spanned different strategies, although each had a different historical comparison. The one-day equity losses were notable in their own right, with all three broad strategies breaching the 1% threshold at once for the first time since Covid.
Fund pressure came as doubts about the AI outlook returned after results from Tesla and Meta failed to ease concerns about whether major technology companies could justify growth expectations, according to Reuters. The renewed rise in oil prices added to investor anxiety. The Associated Press said the decline in AI company shares drove global markets lower on Thursday, while oil’s rise was linked to fears of war with Iran. Meta shares fell 7%, despite the company reporting quarterly revenue above analysts’ expectations, after earnings came in below forecasts. Meta also announced the creation of a new class of shares to raise money for AI investments and other expenses, the agency reported. The share move reflected the market’s sensitivity to AI spending, even as revenue grew.
In U.S. markets, the Nasdaq Composite fell 2.6%, its worst day since June, while the S&P 500 declined 1.2%, its worst performance since July, according to the Associated Press. But weakness in technology shares obscured broader gains: most U.S. stocks rose on Thursday, and the Dow Jones posted a slight gain, the agency said. Brent crude rose 4% to $113.17 a barrel after touching a five-month high. The agency linked the rise in energy prices to fears of war with Iran and uncertainty over when global energy markets would return to normal. Technology stock pressure thus coincided with rising oil, as energy concerns fueled investor worries about inflation.
Goldman Sachs said on October 9 that net exposure among core global long/short equity funds ranged from 0% to 9%, according to a comment by one of its officials. The official said volatility in interest rates and oil was weighing on investor positions. This context provides background to the funds’ moves on a day when oil surged and pressure on technology shares renewed, without changing the loss figures recorded at the close. Goldman Sachs shares themselves closed at $891.3 on October 22, 2026, according to EL7 data. The data provided do not include closing prices for JPMorgan Chase or Morgan Stanley shares.