Rokos Capital Management and Brevan Howard Asset Management lost money in July after a severe selloff in AI-related stocks hit tactical equity overlays and options positions that gave the London-based global macro funds secondary equity exposure. The losses came as hedge funds broadly reduced crowded AI positions and rotated toward healthcare, financials and energy, according to Goldman Sachs. Its VIP basket of popular hedge-fund long positions underperformed the S&P 500 equal-weight index by 11 percentage points from late June to late July, its worst monthly relative performance in more than 20 years. Goldman’s Hedge Fund Trend Monitor, covering 991 funds with $5.4 trillion of combined gross equity exposure, found healthcare, financials and energy overweights at or near decade highs in early third-quarter 2026. Gross leverage, net leverage and AI exposure declined from second-quarter peaks but remained above longer-term averages, while U.S. equity long/short funds had returned 10% through mid-August.