Tiger Global's flagship hedge fund fell 8.5 percent in October, wiping out most of its gains for the year and leaving it roughly flat for 2026, as worries over artificial intelligence investments battered stock-picking funds.

Whale Rock Capital Management's flagship fund, which invests in both listed stocks and private companies, fell about 8 percent in October, cutting its gain for the year to roughly 34 percent. Lone Pine Capital was also among the stock-picking funds hit last month, according to Bloomberg, which cited people familiar with the figures.

A bruising month for stock-pickers October was painful across the industry. JPMorgan estimates that global hedge funds lost about 3 percent in the month, while the Nasdaq 100 fell 6.6 percent, its biggest monthly drop in 18 months. Thursday's rout then compounded the damage: equity long-short funds focused on technology fell more than 4 percent in a single day, leaving their returns for the year roughly flat, according to Goldman Sachs estimates.

Walleye Capital, a $17 billion multi-strategy fund, lost 5.9 percent in October, its worst month since March 2020. In an investor letter on Thursday, the firm said it would cut its head of equity long-short and a substantial portion of its internal long-short investment teams, while continuing to trade stocks.

Why October hurt The losses reflect a sharp turn in sentiment towards the AI trade. Heavy spending on data centres and computing, high borrowing costs and doubts about how quickly the investment will pay off have weighed on technology shares since early October. Stock-picking funds, which tend to hold concentrated positions in growth companies, have felt the reversal more than diversified managers. Point72 and Schonfeld were also among the firms that lost money in October, and some managers have cut risk or reduced teams in response.

[Source: tradersunion.com](https://tradersunion.com/news/business-wealth/show/4124045-tiger-global-whale-rock-hedge-funds-fall/) | [Source: 985theriver.com](https://985theriver.com/2026/11/06/tech-selloff-wipes-out-hedge-fund-gains-prompting-risk-cuts-and-layoffs/)