Goldman Sachs Prime Brokerage Reports Significant Hedge Fund Losses Amid Market Volatility

Goldman Sachs' prime brokerage reported that systematic funds lost 1.2%, fundamental strategies declined by 1.1%, and multi-strategy funds fell 1.4% on October 22, 2026, marking the first simultaneous decline of over 1% for all three categories since the pandemic began. Additionally, a proprietary index tracking hedge fund stocks versus the most-shorted names dropped 4.2%, the worst performance since 2011. The firm noted significant de-leveraging and trade liquidations within the hedge-fund community due to these market conditions.