Updated
Updated · Bloomberg · Aug 5
Whale Rock Fund Drops 21.7% in July as AI Selloff Halves 2026 Gains
Updated
Updated · Bloomberg · Aug 5

Whale Rock Fund Drops 21.7% in July as AI Selloff Halves 2026 Gains

3 articles · Updated · Bloomberg · Aug 5

Summary

  • Whale Rock Capital Management’s flagship hedge fund fell 21.7% in July, making it one of the biggest casualties of last month’s AI-driven market selloff.
  • That slump cut the fund’s year-to-date return to 35.1%, down sharply from 72.5% through June 30 and wiping out about half its 2026 gains.
  • The reversal underscores how heavily AI-focused investors were hit when the sector’s momentum broke, dragging down hedge fund performance after months of outsized gains.

Insights

How did a hedge fund still up 35% this year lose 21.7% in one month when the AI trade suddenly cracked?
Did July’s AI selloff expose a deeper problem in hedge fund positioning, or just create the next buying opportunity?