AI sell-off hammers hedge funds! October rout sparks long-side collapse and fastest forced liquidations in more than a decade, with huge losses prompting layoffs and strategy cuts
Published ・ Source Taiwan | 鉅亨網
The October rout triggered the fastest hedge fund position unwinding in a decade, as the reversal of bullish AI trades led to huge losses. Several prominent funds, including Samlyn Capital, Engineers Gate and Lone Pine Capital, were forced to lay off staff, cut strategies or return capital to control risk.
Facts
October was the most aggressive month for position unwinding by stock-picking hedge funds in more than a decade, with market exposure down about 9% since June.
As of October, more than 40% of stock-picking funds had zero or negative returns for the year.
Technology, media and telecommunications funds lost more than 4% in a single day on Thursday (5).
Samlyn Capital, which manages about $7 billion, lost about 5% in the first 10 months of this year.
Lone Pine Capital fell another 8.8% in October, turning to a 7.5% loss for the year.
After Democrats secured control of both chambers of Congress, markets grew concerned that oversight of AI infrastructure and data centers would tighten.
Engineers Gate, founded by Glenn Dubin, recently dissolved most of its “quantamental” strategies.
Companies mentioned：華爾街日報、摩根士丹利、高盛、Samlyn Capital、Engineers Gate、Lone Pine Capital、Walleye Capital、Arini Capital
Nvidia plunges more than 9% into bear market! Fund managers: It’s time to buy
Published ・ Source Taiwan | 鉅亨網
輝達 shares plunged more than 9% and entered a bear market amid political concerns about data center construction following the U.S. midterm elections. Despite heavy short-term selling pressure, some fund managers believe the fundamentals of AI demand have not changed and that the sharp share-price drop offers an opportunity to build positions. They will also watch the upcoming earnings report to assess whether demand is holding up.
Facts
輝達 shares plunged 9.26% on Thursday to close at $181.60, officially entering a bear market.
Nvidia lost about $447 billion in market value in a single day, its second-largest single-day market value loss ever.
Nvidia shares have fallen about 24.1% from their October record closing high, erasing nearly $1.4 trillion in market value.
The market is concerned that political resistance in Washington and restrictions on data center construction policies could affect AI chip purchases.
Founder ETFs portfolio manager Michael Monaghan expects Nvidia's revenue to grow about 70% next year.
SpaceX recently reached a $40 billion financing agreement with Apollo Global Management to obtain AI chips.
Companies mentioned：輝達 (NVDA)、Stifel、Founder ETFs、SpaceX、阿波羅全球管理 (Apollo Global Management)
U.S. anti-AI forces won't make demand disappear, giving the industry more time to absorb the bubble
Published ・ Source Taiwan | 鉅亨網
After the U.S. midterm elections, Democrats won in key states including Texas and plan to tighten data center approvals, raising concerns that AI infrastructure projects could be held back. Technology writer Derek Thompson said that while this could weigh on share prices in the short term, it could slow supply expansion and help the industry avoid a bubble.
Facts
Democrats won midterm elections in several key U.S. states, with some candidates pledging to suspend or tighten approvals for data center construction.
Original三星電子與SK海力士因伺服器DRAM和高頻寬記憶體需求預期變化而面臨風險。
Technology writer Derek Thompson believes anti-AI politics could help the industry avoid a bubble over the medium to long term.
Texas accounts for about one-quarter of U.S. data center capacity planned to come online by 2030.
Atlanta, Georgia, is one of the most active U.S. markets for data centers under construction.
Democrat Keisha Lance Bottoms won the Georgia gubernatorial election.
Derek Thompson worked as a staff writer at The Atlantic for 17 years.
LITE-ON will showcase its high-speed optical communications technology for AI data centers, extending its work from optical communications into smart sensing, advanced optics and AR optics.
U.S. tech stock rout sparks flight to safety! Money market funds become a haven for cash, topping $8 trillion
Published ・ Source Taiwan | 鉅亨網
U.S. stocks plunged on selling in AI-linked shares and regulatory concerns, sending funds into Treasuries and money market funds as safe havens. Money market fund assets hit a record $8.016 trillion, while markets lowered expectations for Fed rate hikes and shifted their focus to nonfarm payrolls data.
Facts
U.S. stocks fell sharply across the board Thursday, with the Nasdaq 100 down 6.36% and the Philadelphia Semiconductor Index plunging 12.25%.
Assets in U.S. money market funds climbed to a record $8.016 trillion.
The 2-year Treasury yield plunged nearly 11 basis points Thursday to about 4.48%, its lowest since Sept. 9 this year.
After Democrats won control of Congress, the market grew concerned that the new Congress would step up regulation of AI data centers.
[Residential fire] [A residential fire broke out on Zhongzheng Road, Xikou Township, Chiayi County, at 06:58 on the 5th. The fire has been extinguished, with no injuries or deaths] Initial/final report
Published ・ Source Taiwan | 內政部消防署
A house fire broke out on Zhongzheng Road in Xikou Township, Chiayi County. The fire department dispatched 7 vehicles and 25 personnel to extinguish the fire. There were no casualties.
[Grass fire] [Grass fire in Lanyu Township, Taitung County, at 13:31 on the 5th; fire extinguished at 18:50, no casualties] Initial (final) report
Published ・ Source Taiwan | 內政部消防署
A grass fire broke out in Lanyu Township, Taitung County, at 13:31 on the 5th. The fire department dispatched 2 vehicles and 3 personnel, and extinguished the fire at 18:50. There were no casualties.
A man set fire to a police car at 新北市政府警察局汐止分局, No. 1 Minsheng Street, Xizhi District, New Taipei City, by throwing a gasoline bomb at it. The fire was extinguished at 11:05, with no casualties. The burned area was about 0.5 square meters. Police are pursuing the arsonist.
[Residential fire] [A residential fire broke out on Jindun Street, Huatan Township, Changhua County, at 22:50 on the 5th. It has been extinguished, with no casualties.] Preliminary (final) report
Published ・ Source Taiwan | 內政部消防署
A residential fire broke out on Jindun Street, Huatan Township, Changhua County. The fire department dispatched 13 vehicles and 31 personnel to extinguish it. There were no casualties.
[Factory fire] [A fire broke out at 23:04 on the 5th in an outdoor paper pile, 6 meters high, at the 正隆股份有限公司 Dayuan Paper Mill, No. 116 Dagong Road, Dayuan District, Taoyuan City. The fire was brought under control at 00:35 on the 6th. Firefighting efforts are ongoing, with no casualties.] Preliminary report
Published ・ Source Taiwan | 內政部消防署
A fire broke out in an outdoor paper pile at the 正隆股份有限公司 Dayuan Paper Mill at 23:04 on the 5th. The fire was brought under control at 00:35 on the 6th. There were no casualties.
Accused of receiving 170 million to develop an organization for the Chinese Communist Party, Kao Chin-su-mei indicted; prosecutors seek 14 years | 公視新聞 PNN
Stuffy nose every day and endless tissue use? Doctor offers tips for improving allergic rhinitis, starting with control of 1 key factor - Heho健康
Published ・ Source Taiwan | Heho健康
When the weather turns cooler, recurring symptoms such as repeated sneezing, nasal congestion and a runny nose may be caused by allergic rhinitis rather than a cold, a doctor cautioned.