July AI-stock swings hit Rokos, Brevan Howard

Rokos Capital Management and Brevan Howard’s Master fund each dropped about 1.2% in July, narrowing their year-to-date gains, according to people familiar with the results. Rokos’s return through July fell to roughly 8.1%, while Brevan Howard’s flagship finished the month with about a 0.9% gain for the year.

The losses came amid large swings in stocks tied to artificial intelligence that erased much of the market momentum built in the first half of the year. Hedge funds recorded strong gains in the opening six months, then faced a sharp reversal in July driven by big moves in a group of AI-related names.

Market pressure followed new information about corporate spending on AI and an unexpected technical advance from a Chinese AI developer, which intensified investor scrutiny of competition and the scale of investment in the sector. A major chipmaker’s announcement of more than $750 billion in AI-related deals contributed to questions over whether recent spending plans are sustainable.

The rout was amplified by the collapse of an AI-focused hedge fund that plunged about 67% in July. That fund sold the bulk of its public-equity holdings to meet margin calls, and those forced sales added selling pressure to already volatile AI stocks.

The fallout affected more than pure technology specialists. Several macro managers that have expanded equity operations reported losses as large stock moves hit crowded positions. Brevan Howard has increased its equity team in recent years and hired sector specialists under strategist Abhijit Chakrabortti, creating broader exposure for the firm.

Performance varied sharply across managers in July. Citadel’s Equities and Tactical Trading businesses gained about 14.2% and 11.1%, respectively, while Renaissance Institutional Equities rose roughly 9.2% and Quantedge gained about 7.8%. DE Shaw’s Oculus fund rose about 0.9% in July, lifting its year-to-date return to roughly 27.7%, and the firm’s Composite fund added about 0.4%, taking its 2026 gain to roughly 13.9%.

Other large funds reported declines: Millennium fell about 2.1% in July, Point72 dropped roughly 3.3%, and Marshall Wace’s TOPS strategy lost about 2.6%. Technology-focused and long-biased managers were hit harder: Coatue declined about 8.3% and Altimeter fell roughly 11%. AI-focused strategies showed particular sensitivity: Point72’s Turion strategy dropped about 11.4% in July, while Whale Rock’s Long Only and Flagship strategies fell about 18.8% and 21.7%, respectively.

Despite July’s setbacks for some, several managers remained well ahead for the year through July. Quantedge was up about 34.6%, DE Shaw’s Oculus about 27.7%, Citadel’s leading strategies roughly 27%, and D1 Capital’s stock portfolio near 23.3%.