00:00Trend-following hedge funds just suffered their worst week since 2024, losing 2%.
00:04The sell-off came as investors questioned whether massive artificial intelligence spending will pay off.
00:11Reuters reports the Nasdaq 100 fell 5.5% last week, its biggest weekly drop since April 2025.
00:19Meta shares also plunged 10%, despite strong earnings, after concerns emerged about funding its growing AI investments.
00:26The selling spread across technology stocks. Goldman Sachs reported $20 billion in tech stock selling over two weeks, approaching the
00:34$23 billion seen in July.
00:36Yet the broader picture is more complicated.
00:38Despite October's losses, systematic hedge fund strategies remained up 18.7% for the year, while fundamental long-short strategies
00:47were up 8.8%.
00:49The central question is whether future returns from AI can justify the enormous cost of building it.
00:55Disclosure. This video contains stock footage and content created or enhanced using AI-assisted tools.
