ChainThink reports that on November 6, U.S. stocks plunged sharply, with the Nasdaq 100 posting its largest single-day decline since March 2020, and the S&P 500 losing $3 trillion in market value.
Several analysts have stated that a collective liquidation by hedge funds may be one of the reasons for the accelerated market decline.
According to an investor letter obtained by Bloomberg, hedge fund Walleye Capital, which manages over $17 billion in assets, suffered a 5.9% loss in October, marking its worst monthly performance since March 2020.
The company plans to return some cash and reduce the scale of its internal equity business; Anil Gondi, head of equity investments, has agreed to part ways with a significant portion of the equity team, and the company will focus moving forward on core strategies such as volatility, quantitative strategies, and external businesses.
There are also market rumors that the hedge fund Millennium has withdrawn over $1.5 billion in leveraged capital from two external fund managers, while Lone Pine is rumored to be facing total bankruptcy; these claims have not been verified.