Hedge fund returns worsen this week as tech selloff deepens

By Summer Zhen and Anirban Sen HONG KONG, New York Oct 23 (Reuters) Global hedge funds were hit by a fresh tech reckoning this week, with major strategies posting their worst day since the COVID-era ​market rout. A renewed selloff in big tech stocks, driven by growing ‌skepticism over the massive AI buildout spending, swept through global markets and dealt a heavy blow to global hedge funds. If last Thursday felt bad, today has been worse, Goldman Sachs prime brokerage team said in a note sent to clients. All three major strategies tracked by Goldman ‌Sachs ​lost more than 1% on October 22, a first ⁠since the COVID pandemic, with ⁠losses spanning fundamental equity long-short, systematic and multi-strategy funds. One catalyst for the latest selloff was Meta, one of the hyperscalers spending billions to build AI models, after the company said it would issue a new class of ​shares to help it raise funds. Meta Platforms slumped 7% on Thursday, its largest drop since July. Nvidia tumb