ME News reports that on July 31 (UTC+8), a fund under Jupiter Research Capital, associated with the renowned Chinese quantitative firm Ming Shi Investment, suffered severe losses during the sharp decline in AI-related stocks. Within just over three weeks since July, the fund’s net asset value dropped by more than 40%. Investor updates show that the fund lost less than 7.5% in the first three trading days of July, but by July 24, losses had expanded to approximately 43%. Earlier this year, the fund managed around $186 million, employing a market-neutral strategy with 2x to 4x leverage. Recently, as market concerns over the sustainability of AI investments have intensified, global AI sector stocks have experienced a significant correction, putting pressure on hedge funds heavily weighted in AI-themed positions. Goldman Sachs noted a “quant earthquake” in China’s market, with momentum strategy reversals triggering forced liquidations in positions tied to AI and small-cap stocks. (Source: ODAILY)
Jupiter Fund linked to Mingshi suffered over a 40% loss in July
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Summary
A fund linked to Jupiter Research Capital and tied to Mingshi Investment, known as MetaEra, dropped over 40% in July. The $186 million fund, utilizing 2-4 times leverage, lost 7.5% in the first three days of the month, with losses expanding to 43% by July 24. AI-related stocks plunged as concerns grew over the viability of value investing in crypto and the sustainability of AI investments. Hedge funds holding AI positions faced broad sell-offs, prompting traders to reassess their stop-loss strategies in volatile markets.
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