On July 30, a Goldman Sachs report showed that equity hedge funds focused on Asian markets are facing the largest single-month drawdown on record, due to a broad sell-off in AI concept stocks, erasing most of the gains from previous concentrated bets on the sector. Goldman Sachs said that as of July 28, fundamental long/short equity hedge funds focused on Asian markets fell an average of 18.6% this month. In the first half of the year, these funds became among the best-performing globally due to early bets on AI hardware leaders, including South Korean chipmakers SK Hynix and Samsung Electronics. Some funds' returns once exceeded 100%. However, the market has now seen a sharp reversal. Goldman Sachs said that since the year-to-date return peaked at 40% on July 22, these funds have given back 21 percentage points of their year-to-date gains. Goldman Sachs noted that the crowded AI trades that drove significant fund gains in the first half are now 'the main factor behind the unusually large drawdown this month.' Among them, funds with higher AI theme exposure suffered heavier losses. Facing severe market volatility, hedge funds have been taking profits and reducing risk. According to Goldman Sachs data, as of July 27, Asian hedge funds have reduced exposure for eight consecutive trading days, with the 'five-day cumulative total exposure reduction' hitting a record high. (Jin Shi)