Short sellers are building record bearish positions across US equities despite a powerful stock market rally, as concerns over the durability of artificial intelligence investment and growing competition from China fuel scepticism among investors, according to a report by Bloomberg.
SpaceX endured a difficult start to life in the Nasdaq 100 Index, with its shares falling back to near their IPO price and prompting fresh scrutiny from hedge fund managers over the stock’s valuation and volatility.
South Korea’s sharp equity correction is testing hedge funds that have been among the biggest beneficiaries of the AI-driven rally in semiconductor stocks.
Hedge fund Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrenner, is among a group of investors signalling interest in SK Hynix’s planned $28bn Nasdaq listing, according to a FT report.
Large institutional investors are continuing to commit capital to private credit strategies despite heightened market volatility, underscoring sustained confidence in the asset class and its ability to generate attractive risk-adjusted returns.
Michael Burry’s latest bearish calls on artificial intelligence-related stocks are prompting renewed debate over whether the famed investor now exerts a market influence comparable to Warren Buffett’s long-observed ability to move share prices, according to Business Insider.
Hedge funds are increasingly scrutinising elevated US corporate earnings expectations as Wall Street analysts lift S&P 500 profit forecasts at the fastest pace since the post-pandemic recovery, raising concerns that markets may be pricing in overly optimistic assumptions.
Citadel delivered positive performance across its major hedge fund strategies in the first half of 2026, with gains led by its tactical trading and equities books amid volatile and uneven market conditions.
Technology-focused hedge fund Whale Rock Capital Management returned 72.5% in the first half of 2026, placing the $19 billion manager among the year’s top-performing hedge funds as AI-related investments continued to outperform.
Citadel Securities has hired Mukilan Ashok, the former interim CTO of Polymarket US and previously a senior engineering lead at Citadel, in a move that underscores rising institutional interest in prediction markets.
