AI Bubble Burst Hits Hedge Funds | Business and Finance News

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Recorded21 Aug 2026

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July was brutal for hedge funds—Goldman Sachs revealed their top picks underperformed the S&P 500 in over two decades, as AI and big tech stocks took a nosedive. After a Q2 surge fueled by AI hype and massive portfolio shifts, funds began pulling back in July, trimming AI bets while still maintaining higher-than-average exposure. Despite the July slump, US long/short hedge funds are up 10% through mid-August—proof that even when trends fade, momentum can still hold. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/d737dc2b8fcd81b7

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