Over 500 New-Generation Fund Managers Face Q3 Drawdowns as H1 Gains Erased

The washout matters less for the erased gains than for what it reveals about a cohort that had only known favorable conditions: risk frameworks and valuation discipline were largely untested until now. Their response—keeping technology exposure but tightening valuation and allocation—suggests a shift from momentum toward process, which could change how these funds behave in the next drawdown. Whether that discipline holds through further volatility, and whether redemption pressure follows the erased H1 returns, is the open question.