# Hedge fund returns worsen this week as tech selloff deepens

> **Open Intelligence Dossier** · First detected: 2026-10-23 13:20 UTC · Category: Business

## Executive Summary
Hedge fund returns worsen sharply as a deepening tech selloff drives historic daily drawdowns and pushes short bets to five-year highs.

## Intelligence Brief
Recent reporting indicates that hedge fund returns are worsening significantly this week amidst a deepening technology sector selloff. According to Bloomberg.com, hedge funds have logged their widest daily drawdown since the Covid-19 pandemic during the ongoing market rout. Concurrently, MarketWatch notes that the past month has been painful for these funds, prompting them to actively short United States equities in an effort to turn their performance around. Coverage from multiple financial platforms elaborates on the scale and risk profile of these current market positions.


Yahoo Finance and Seeking Alpha report that bearish bets by hedge funds have climbed to five-year highs. Furthermore, Yahoo Finance highlights warnings from Goldman regarding the escalating risk of a short squeeze as these bearish positions accumulate across the market. This turbulence follows a sequence of adverse developments for institutional portfolios as technology stocks face intense downward pressure. The current climate forces fund managers to navigate severe drawdowns while simultaneously scaling up short positions to hedge against further losses.


Coverage does not yet specify the exact total capital affected by these drawdowns or the specific portfolio weightings of individual funds beyond broad sector trends. Looking ahead, observers will need to monitor how the ongoing technology sector selloff interacts with these record-high short positions. Market participants will watch for any signs of a short squeeze materializing as warned by Goldman, alongside subsequent updates on hedge fund returns from Reuters, Bloomberg.com, Seeking Alpha, MarketWatch, and Yahoo Finance.

## Multi-Source Evidence Table
| Source Outlet | Headline | Verification URL |
|---|---|---|
| Bloomberg.com | Watch Markets: Hedge Funds Suffer Widest Daily Drawdown Since Covid | [Source Link](https://news.google.com/rss/articles/CBMiqwFBVV95cUxQSEljU2Jyck1qZmt2aEU1NDRkZTRiZlQyaEVrRDJTUlNUeld3X3pBeHA1cWhYWE9PblN4bDJUVHpUNUF5aVhJRkp2NFN6anVZNWxXUmxsdGozTTNhV2l0S0wxRDFCNlJpeGp4ZE8xMzE5SFNLWlBkdl8xQkxBZzVUNk5ZclVEYVBILW9jUmNUSXloQkdXRzZIYnBzQUlDR2JOLVJ2ZEM4b0dBRms?oc=5) |
| MarketWatch | It’s been a painful month for hedge funds. To turn it around, they are shorting U.S. stocks. | [Source Link](https://news.google.com/rss/articles/CBMiygFBVV95cUxQRUEzbXg0dHBYY0k4Z3hocWJobVZlVzVxQ0huYWY4blRmZTZHYmFLZmJYdWlfV0d4SG5QNnlLVFpYeFRrM25RV1FLNEdmUVNzVzBEY2d1STVDOTNzMGNfNjlZRGthbjRmUEpzS0lXSTRsaEtEcE5NenRwVGRTNXVnSE9BRzkxNUF1SzJhYjJ6eDR3bGQ4QjJFMFNLZGJuWDRZN2x1bjZEeloxeTlIMW9Rc09GN19SMlNpSzh6dzNBcWliQVl0NW5MbzN3?oc=5) |
| Seeking Alpha | Hedge funds’ bearish bets near five-year high as squeeze risk builds | [Source Link](https://news.google.com/rss/articles/CBMiqAFBVV95cUxQdmJpSjh6Q2hCdkJQdTRuQ3BMdVZIOGI0TGRLaVVZdnNqSkJGUWxILVFfeEdaZl9YWGpCR3pjcUpNQ2VFdzZTTmh3eXpQMERWcWxDTmpLbDZFRDBtWGpZZ3RKY2pyNHgzdFhHbi1iV2Y0YjVURmNQa1pyZjhrbmhMejBnOVdxNGN5RkU1NjM4UzV0YW5OOVRUSXp6T3YwaFpELXBfZlp2a2k?oc=5) |
| Yahoo Finance | Hedge Funds Are Ramping Up Stock Shorts to Five-Year Highs. Goldman is Warning of a Squeeze. | [Source Link](https://news.google.com/rss/articles/CBMingFBVV95cUxQSXczMTRkV0V6TTNfMENaeFJtcjEwZXRUNU9hbkVjN1J0WllEOGxfSnZCZmc3dlQxU0VuczJRRHNIRWpWWkxjbkhDeVgzZWdROFFMZE9SU281Y18wWUQ0S1dCZEdBV05ZSlp2bHljaktWeEVYdmM0VU9lQXBGZTZLX2lpTjlMdHlLMVRjOHF1b2FVcEwxRnNublJDQUx5UQ?oc=5) |
| Bloomberg.com | Hedge Funds Log Widest Daily Drawdown Since Covid in Rout | [Source Link](https://news.google.com/rss/articles/CBMitAFBVV95cUxQUk1WMERkSnJGTUZ3OFpKZVk2YTVWRE9KUEduR1lFdFI3REU3MFFnbW9tcTBHeTY2MEYtNXV5a2JZcDc3VnJ3MDNKajh6ZGFGVUhJNkRPMVhuSkpGWmVPTUh0TEkzUmkxRDR5ZWV2eC1VMFZ4VjVZX2lXNE94WmpEVEdKUXlZd3JUOGlGb0FMLWlYNUYza1U2WHFjeUg2WmtoVS00X0liOVkxejlwUERWNUxKdmU?oc=5) |
| Reuters | Hedge fund returns worsen this week as tech selloff deepens | [Source Link](https://news.google.com/rss/articles/CBMiqwFBVV95cUxNS0h2UUh0dUpTb1VWWGJYWm1KOXM4eXZQc1dyTlJMSWNnQ2tOVS1JRmdTMmJMaGpJSEo1c05kLUpXamZVTWVPWUppREI5OWFPUmZVV3hnektWdlRmWXVHNHpkQldJUk1PVEN0QUQ5NE0zczdSc0RMRGhOV28yYkZqeHFEMTFXUElRTDVCMXUybHRGSFhXcUFBS0hoS3V1NWVSREJGa2FCT1ludVU?oc=5) |

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*Canonical Source: https://pulse.byoviral.com/trend/2026-10-23/hedge-fund-returns-worsen-this-week-as-tech-selloff-deepens*