Funds

• Asia’s multi-strategy hedge funds faced a significant downturn in July, driven largely by a selloff in AI-linked chip stocks that eroded first-half gains. • Notable losses were reported by Hong Kong-based Polymer Capital Management, which fell 6.9%, and Singapore-based Dymon Asia, which declined 6.5%. • The slump is compounded by tighter financing from banks, which may force funds to reduce risk quickly in markets like South Korea and Taiwan.

• Asia multi-strategy hedge funds experienced significant monthly drawdowns, coinciding with a 22% slump in Korea’s Kospi Index and an 8% decline in Japan’s Nikkei 225. • Specific losses were reported by major firms, including a 9% retreat for Hong Kong-based Pinpoint Asset Management and a 6.5% drop for Singapore’s $9 billion Dymon Asia fund. • Singapore-based Arrowpoint Investment Partners saw a milder loss of 2.6%, while Dymon Asia's year-to-date gain from January to July narrowed to 7.5%.

• Asia-focused hedge funds experienced record losses in July, marking the worst month on record for regional equity long-short managers according to Goldman Sachs. • The downturn was driven by a sharp sell-off in AI-related stocks as investors questioned the sustainability of the sector's massive capital expenditures. • Significant casualties included South Korean chip maker SK Hynix, which dropped over 30%, and Japan's Kioxia Holdings, which saw its value nearly halve.

Government has so far returned $100bn to companies that paid levies US supreme court ruled illegalBusiness live – latest updatesThe Trump administration has refunded about $100bn from the tariffs it collected before the US supreme court ruled them illegal, according to reports.The $100bn (£74bn) figure, which represents 60% of the total $165bn collected from Donald Trump’s “liberation day” tariffs, was reported by customs officials to the US court of international trade (CIT) on Tuesday, according to the Financial Times. Continue reading...

• The Lok Sabha was adjourned for the day following an uproar from Opposition MPs regarding the funding of the Ram Temple. • Chaos also erupted in the Rajya Sabha as members protested the absence of Prime Minister Narendra Modi and Home Minister Amit Shah during discussions on the July 20 police action and NEET protests. • Congress MP Pawan Khera demanded an official statement from the Union Home Minister, alleging that the government is intentionally avoiding a parliamentary discussion on student issues.

• Emerging market funds are increasingly tied to the success of AI, specifically through semiconductor manufacturers in Taiwan and South Korea. • Fund managers are currently prioritizing companies benefiting from AI infrastructure expenditure over the "Magnificent Seven" US firms spending the capital. • A July market slump highlighted the volatility of these funds and revealed which regional portfolios can remain resilient when tech stocks decline.

• Retail investors are increasingly utilizing AI-powered trading bots to automate their investment strategies and compete with institutional hedge funds. • These sophisticated tools allow day traders to analyze market data and execute trades automatically, attempting to replicate the "secret code" used by Wall Street professionals. • This shift matters as it democratizes access to high-frequency trading capabilities that were previously reserved for wealthy firms with massive technical resources.