The declines coincide with record-level bearish positioning, as hedge funds sold $5 of stocks short for every $1 they purchased this month. Goldman Sachs flagged a short squeeze risk, noting that short leverage on its books has reached the 99th percentile of the past five years. The broader market pressure was highlighted by a 2.9% plunge in the Nasdaq 100 on Thursday, its largest daily loss since June.
Sunday, October 25, 2026
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Goldman's VIP Hedge Fund Basket Plunges 4.2% in Worst Day Since 2011
US Markets18 hours ago
More than 66% of global hedge funds ended Thursday in negative territory as a selloff in technology stocks triggered widespread institutional deleveraging. A portfolio tracking popular hedge fund holdings relative to most-shorted stocks, the Goldman Sachs VIP long basket, fell 4.2% for the day, the steepest one-day decline for the index since 2011 and a total loss of 10.4% for the month. Other strategies also saw losses, with multistrategy funds sliding 1.9% and those focused on technology, media, and telecommunications dropping an average of 2.7%.
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