Goldman: Trend-Following Hedge Funds Post Worst Week Since 2024 as AI Stocks Slide

The signal here is that systematic trend-following strategies, which profit from sustained directional moves, got caught leaning the wrong way once AI-linked equities reversed. That matters because these funds had likely been riding the AI trade's momentum, so the drawdown reflects how crowded that positioning had become rather than a single bad call. It also hints at a feedback loop: forced de-risking by trend followers can amplify the very moves that hurt them. Whether the AI selloff deepens or stabilizes is the open question, and how much more systematic unwinding follows is worth watching.