Millennium Management posted a 2.1% loss in July as the sharp reversal in artificial intelligence and semiconductor stocks dented equity portfolios across the hedge fund industry, according to a report by Bloomberg.
The report cites unnamed people familiar with the firm’s performance as saying that the decline reduced year-to-date gains at the $92bn multi-strategy hedge fund to 8.2%.
The setback came during a volatile month for hedge funds, as investors unwound crowded AI-related positions following a sharp correction in technology stocks. The market turbulence was compounded by the collapse of AI-focused fund Situational Awareness, which was forced to liquidate much of its public equity portfolio to meet margin calls, adding further pressure to the sector.
Not all managers struggled during the period.
Quantitative hedge fund Quantedge delivered one of the strongest performances among its peers, gaining 7.8% in July to lift its year-to-date return to 34.6%. The $7.2bn systematic manager benefited from trading opportunities across multiple asset classes during the heightened market volatility.
Elsewhere, macro specialist Pharo Macro generated a modest 0.23% gain in July, taking its return for the year to 9.9%.
Among multi-strategy firms, LMR declined 0.48% during the month but remained up 6% year to date, while North Rock, a multi-manager equity platform, also lost 2.1%, leaving it up 4.8% for 2026.
The challenging environment reflected a broader shift in market leadership as investors reassessed expectations for AI-related spending and technology valuations. Rising oil prices also fuelled concerns over inflation, pushing long-dated US Treasury yields higher and creating additional headwinds across risk assets.
The mixed returns illustrate the differing impact of July’s market volatility across hedge fund strategies. While discretionary equity and multi-strategy managers were hurt by the abrupt reversal in AI trades, systematic and quantitative funds generally proved better positioned to exploit increased volatility across equities, fixed income, commodities and currencies.
Representatives for Millennium, Quantedge and the other firms reportedly declined to comment on their performance figures.
