# Tech selloff wipes out hedge fund gains, prompting risk cuts and layoffs

- URL: https://talkfuse.com/story/tech-selloff-wipes-out-hedge-fund-gains-prompting-risk-cuts-and-layoffs/
- Published: 2026-11-06T07:01:43+00:00
- Updated: 2026-11-06T07:18:48+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/tech-selloff-wipes-out-hedge-fund-gains-prompting-risk-cuts-and-layoffs-6530456
- Topics: World

## Key points

- A tech-led selloff wiped out many hedge funds’ 2026 gains.
- Tech-focused long-short funds fell more than 4 per cent on Thursday.
- Walleye Capital plans team cuts and to return some capital.

## Summary

A sharp global equity selloff led by technology shares erased much of many hedge funds’ gains for 2026, with tech-focused funds hit hardest. The losses have prompted managers to reduce risk and shrink some investment teams, and further cuts could follow if markets continue to fall.

Goldman Sachs estimated that technology-focused equity long-short funds lost more than 4 per cent on Thursday, leaving their year-to-date returns roughly flat after gains peaked at 24 per cent in June. Walleye Capital, a $17 billion fund, said it would scale back its internal equity long-short business, cut a substantial part of its equity team and return some capital after its worst month since March 2020; JPMorgan estimates hedge funds lost 3 per cent in October.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.