Rokos Capital Management and Brevan Howard Asset Management, two of London's most prominent global macro hedge funds, lost money in July as a selloff in AI-related stocks hit equity positions layered onto their macro books. Other hedge funds with concentrated tech and AI exposure posted much larger losses in July, with one fund down as much as 67% for the month.
Even funds built to sit outside pure equity risk couldn't dodge July's AI stock selloff. Rokos Capital Management and Brevan Howard Asset Management, two of London's most prominent global macro hedge funds, lost money in July as a selloff in AI-related stocks rippled through portfolios that were supposed to be insulated from exactly this kind of thing.
Overlays meant to hedge became a liability
Both firms had built tactical equity overlays and options positioning into their strategies, which gave them secondary exposure to stocks on top of their core macro trades. When AI names cratered in July, that secondary exposure turned from a nice-to-have into a liability.
Other AI-focused funds took harder hits
Rokos and Brevan Howard weren't alone, and the damage across the hedge fund landscape was severe. Situational Awareness's AI-focused fund dropped 67% in July. Whale Rock Capital Management's tech fund fell 21.7% over the same stretch. Altimeter Capital's AI fund declined 11%.
Rokos oversees $22 billion in assets
Chris Rokos co-founded Brevan Howard before leaving to start his own firm. Rokos Capital Management now oversees approximately $22 billion in assets. The fund had posted a 21% return in 2025 and a 31% gain in 2023 before July's reversal.
Brevan Howard was founded in 2002 by Alan Howard. The firm has had a more uneven run, with its flagship fund delivering mixed results amid the macro volatility of 2026.
Source: Crypto Briefing
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