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The latest 13F filing for the third quarter of 2026 submitted by the quantitative hedge fund Renaissance Technologies, founded by mathematician Jim Simons, shows that the institution has significantly adjusted its U.S. stock holdings, nearly completely liquidating its positions in Nvidia, Meta, Apple, and Amazon, with Nvidia's holdings decreasing by 99.7% from a previous market value of approximately $1.42 billion. This reduction occurred weeks before the controversy involving Jensen Huang was exposed.From the perspective of the top ten holdings, Micron Technology ranks first with $1.62 billion, Advanced Micro Devices ranks second with $1.21 billion, followed by United Therapeutics at $908 million, Intel at $835 million, Google's parent company Alphabet at $828 million, and UnitedHealth at $817 million. Additionally, it has established a new position in SpaceX, with a holding value of approximately $621 million.In terms of specific adjustments, the institution has significantly increased its holdings in SanDisk, with the number of shares increasing by 5451%; Micron Technology and UnitedHealth saw their share counts increase by 619% and 507%, respectively, while AMD increased by 140%. Aside from Nvidia, the share counts for Meta, Apple, and Amazon were reduced by 99.9%, 99.8%, and 99.5%, respectively, and it reduced its position in Palantir by 71%. The institution also completely exited its positions in Blackstone, the S&P 500 ETF, Mellanox Technologies, and Danaher, among others.

According to Unfolded, citing CFTC position report data, as of November 3, the net short position of leveraged funds in CME standard Bitcoin futures has decreased to 12,955 BTC, down 89% from the peak of 115,985 BTC on December 17, 2024, marking the lowest level since February 2023, indicating that hedge funds have significantly closed their Bitcoin basis trades.Unfolded stated that the arbitrage buying that previously boosted ETF inflows has essentially disappeared, and the capital flow into spot ETFs will more reflect genuine directional demand, with structural buying that can act as a buffer during price declines also decreasing.

The latest monitoring report released by Morgan Stanley's prime brokerage team on Tuesday shows that global equity hedge funds staged the most intense de-risking action in over a decade during the first week of November, with a widespread wave of liquidations spreading across global markets.In the Asian market, hedge funds are controlling risk exposure through a dual strategy of reducing long positions and increasing short positions, a phenomenon particularly pronounced in the tech-heavy South Korean market. The selling pressure is mainly driven by fundamental stock-picking funds, while multi-strategy, macro, and quantitative funds are taking the opportunity to close out previous short positions, indicating a clear divergence in institutional strategies.Goldman Sachs data shows that the total leverage of U.S. fundamental long-short funds plummeted by 8.7 percentage points in a single week, marking the largest decline since the outbreak of the pandemic in March 2020; however, from the perspective of all-inclusive PB clients, the overall total leverage remains as high as 314.2%, placing it in the 85th percentile over the past year. Dubravko Lakos-Bujas, Global Market Strategy Chief at JPMorgan, believes that this round of adjustment is essentially a concentrated deleveraging by momentum traders, with capitulation-style selling already quite deep, and technical indicators suggest that short-term oversold and bottoming signals are accumulating.

Veteran Wall Street figures Alex Popa and Charles Elkan are establishing a new stock hedge fund primarily operated by artificial intelligence agents. The fund's first strategy, AI Clarity, will open to external clients early next year, investing in 80 to 100 large-cap U.S. listed stocks, with a target holding period of three years.

According to Bloomberg, Wall Street's reaction to the U.S. midterm elections shifted from positive to negative in about 24 hours. The sell-off on Thursday spread from retail investors to hedge funds, long-only asset management firms, and quantitative strategies, causing a loss of approximately $3.7 trillion in market value for U.S. stocks in a single day, with the Nasdaq 100 index recording its largest drop since March 2020. Initially, the stock market rose after the elections due to the reduction of event risk and a decline in oil prices, but investors later reassessed the risks of Democratic scrutiny on data center expansion.In the first half hour after the market opened on Thursday, retail investors were the first to sell for profit, followed by hedge funds and long-only firms. Data from Vanda Research shows that the net selling scale of retail investors on that day was second only to two days during the pandemic shock in March 2020. Its strategist Viraj Patel pointed out that while retail and systematic investors were actively selling, institutional buyers chose to step back. The decline subsequently triggered mechanical selling, with Nomura strategist Charlie McElligott estimating that based on the negative gamma exposure during Thursday's trading, for every 1% drop in the market, options market makers would generate an additional selling pressure of about $7 billion.Volatility control funds estimated that they needed to reduce their holdings by about $61 billion in stocks based on market changes at the time, with about $25 billion in sales still being executed on Wednesday. The rebalancing of leveraged ETFs is expected to bring about an additional $47 billion in stock sales. Vanda estimated that commodity trading advisors sold about $13 billion in S&P 500 and Nasdaq futures. Goldman Sachs' prime brokerage trading desk estimated that fundamental long-short funds lost about 1.3% on Thursday, while technology-themed funds fell over 4%. The basket of stocks in storage, optical networks, data centers, and AI semiconductors dropped by 12% to 15% that day, and the VIX index rose from 16.6 points at the opening to nearly 28 points at the close.

Former Moore Capital Management portfolio manager Paul Yablon is returning all external funds from the digital asset hedge fund Room40 Capital, opting to manage his own capital and that of an institutional partner, while expanding the investment strategy from cryptocurrencies and digital assets to macro trading.Paul Yablon admitted that the $6.3 billion hacking incident at Binance highlights the ongoing security challenges faced by the cryptocurrency industry, while clarifying that Room40 Capital does not hold any assets from Binance. The main reason for this exit is the asymmetric risk-reward ratio and the fact that favorable cryptocurrency investment opportunities have become very scarce. According to informed sources, Paul Yablon will return to Moore Capital as a macro portfolio manager.

According to informed sources, due to the sell-off of artificial intelligence-related stocks impacting global markets, one of Asia's largest hedge funds, Aspex Management, recorded a loss of about 16% in October, marking one of the largest monthly declines in the fund's history. As of the end of October, the fund is still up 9% for the year.

According to a letter to investors from Walleye Capital, the hedge fund will streamline its internal long/short equity business, replace the leadership of this business along with a significant portion of the investment team, and plans to return some capital to investors, with specific amounts, timing, and methods to be announced separately.Walleye lost 5.9% in October, marking its worst monthly performance since March 2020. The company stated that the internal long/short equity business has performed the weakest since 2023, and will subsequently focus more on volatility, quantitative, and external management strategies, but will still retain stock investments through external managers and high-conviction internal managers.The financial research community Special Situations also summarized that internal teams from Axebrook, Engineers Gate, Lone Pine, Millennium, and Verition, along with Samlyn, have experienced liquidations, large redemptions, or team adjustments this week. Some of this information has not yet been officially confirmed and should not be interpreted as all related funds having been liquidated.

FOX reporter Charles Gasparino stated that according to a CEO of a financial services company, "the number of hedge funds being dragged out in this round of U.S. stock declines has reached the highest level since 2009. This is necessary. More pain is needed to prepare for the bottom."

In response to the sharp decline in U.S. stocks yesterday, most traders and analysts on Wall Street believe that the main reason is not a deterioration in fundamentals, but rather the liquidation by hedge funds. Noel Smith, Co-Chief Investment Officer of Kai Asset Management, stated: "It is extremely rare to see such a decline without significant market news. It smells like liquidation."In addition to the report last night by Bloomberg that multi-strategy hedge fund Walleye Capital will streamline its internal long-short equity business, the market generally expects several funds to be undergoing complete liquidation, or that the pods (independent investment teams) within multi-strategy funds are being forced to close positions or liquidate.According to a list released this morning by the well-known financial research community Special Situations, several hedge funds are facing difficulties, including Axebrook, Walleye, Engineers Gate, Lone Pine, Millennium internal pod, Verition pod, and Samlyn, mainly involving large redemptions, shutting down internal teams, or changing PMs.It is worth mentioning that during the major turbulence in the U.S. stock market in July this year, the AI hedge fund Situational Awareness also encountered a similar incident, with fund assets shrinking by 67%, and subsequently reached an emergency exit deal with Citadel, selling most of its publicly traded stock holdings at a discount.

According to Coin Bureau citing data from Goldman Sachs' prime brokerage business, hedge funds have net sold global AI-related stocks for five consecutive trading days, with the total selling amount offsetting all net purchases of AI stocks since the beginning of 2025. The data shows that hedge funds have sold approximately $20 billion in tech stocks over the past two weeks, primarily by reducing existing long positions, with the scale of selling long positions being about 3.5 times that of new AI short bets.On October 22, the basket of popular stocks tracked by Goldman Sachs for hedge funds fell 4.2% in a single day, marking the worst performance since 2011. Additionally, according to Steno Research citing data from Morgan Stanley, hedge funds reduced their overall stock exposure by about 7.8%, the largest decline since the bank began tracking in 2016. Meanwhile, storage chip companies such as Samsung, SK Hynix, Micron, and SanDisk have collectively evaporated over $700 billion in market value in less than two weeks, with chip stocks down 15.6% in October, while the S&P 500 index fell by less than 1% during the same period.

According to monitoring by Lookonchain, Abraxas Capital has made a total profit of over 353 million dollars from 2 hedge accounts on Hyperliquid. Currently, the size of its short positions has exceeded 1.29 billion dollars.

As of the week ending October 20, leveraged funds increased their net short positions in euros by 1,305 contracts, reaching 94,100, the highest level since March 2020, corresponding to short bets of approximately 11.8 billion euros.The turmoil in French politics, debt pressures, and escalating protests have heightened market concerns, dragging down the euro's performance. The euro fell 0.4% against the US dollar this week.

According to Bloomberg, the prediction market platform Kalshi plans to launch exchange-traded futures contracts tracking the U.S. Consumer Price Index (CPI) and core CPI in December. They are promoting related products to major banks and hedge funds and have hired former Barclays trader Michael Ashton, known as "Mr. Inflation," to design the contracts and expand institutional clients.If launched, this would become a unique futures product directly tracking the CPI, helping institutional investors hedge against inflation and the risks of changes in Federal Reserve interest rates, and allowing Kalshi to further enter the traditional derivatives market dominated by the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE). Kalshi has confirmed that it is developing CPI futures but has not disclosed specific launch details.

Goldman Sachs Group data shows that, affected by the stock market sell-off, global hedge funds have experienced the broadest decline since the COVID-19 pandemic. All three major stock strategies fell more than 1% on the same day.As of Thursday's close, global fundamental long-short strategy funds fell by 1.4%, while funds focused on telecommunications, media, and technology sectors averaged a decline of 2.7%. Global systematic long-short strategy funds fell by 1.3%, and multi-strategy platforms fell by 1.9%.

According to PR Newswire, the blockchain asset management firm CMCC Global announced the tokenization of its Crest Fund (Crest) and Liberty Bitcoin Accumulation Fund (LBAF), calling them the first tokenized master fund products issued under El Salvador's digital asset legal framework.The two funds will be issued using Tether's Hadron tokenization platform and will raise funds from qualified investors through the regulated Bitfinex Securities platform, with the subscription period ending on October 30, 2026. Both funds are multi-manager quantitative hedge funds that invest in market-neutral strategies in the digital asset market, including funding rates, cross-exchange and volatility arbitrage, market making, and DeFi strategies. Among them, Crest is denominated in USD, targeting returns above U.S. Treasury yields; LBAF is denominated in Bitcoin, targeting a net annualized return of 8% to 12%.BTCS S.A., a digital asset treasury company listed in Poland and Frankfurt, has agreed to act as a cornerstone investor and plans to allocate a three-digit number of Bitcoins to LBAF, with the specific amount not yet disclosed. The token issuance price is set at $10 per CREST and 0.0001 BTC per LBAF, with a minimum subscription of one token; eligible holders can also trade on the secondary market through Bitfinex Securities around the clock.

According to Bloomberg, Augnition Global Investors, a technology hedge fund founded by Jeff Wang, the former head of global equities at Sequoia Capital, announced that it has completed fundraising of over $1 billion.According to disclosed regulatory documents, the fund started with at least $570 million in capital, of which about 45% is internal capital.