Updated
Updated · Business Insider · Aug 4
Whale Rock Flagship Fund Drops 21.7% in July as AI Sell-Off Cuts 2026 Gain to 35.1%
Updated
Updated · Business Insider · Aug 4

Whale Rock Flagship Fund Drops 21.7% in July as AI Sell-Off Cuts 2026 Gain to 35.1%

3 articles · Updated · Business Insider · Aug 4

Summary

  • Whale Rock Capital’s flagship fund fell 21.7% in July, slashing its 2026 return to 35.1% from 72.5% through June after a sharp reversal in AI-linked stocks.
  • The $19 billion Boston manager’s long-only fund also lost 18.8% in July, though it remained up 36.8% for the year, underscoring how broadly the sell-off hit its growth-heavy bets.
  • SanDisk, Bloom Energy and CoreWeave tumbled in mid-July amid Asian market jitters, while Google and Meta also slipped as investors questioned sustained AI spending; Whale Rock had added to SanDisk and Bloom Energy in the first quarter.
  • Coatue lost 8.3% in July and Marshall Wace’s Eureka fund fell 6.9%, showing the pressure extended across tech-focused hedge funds.
  • Leopold Aschenbrenner’s 67% July loss was worsened by margin calls on leveraged AI positions, and Citadel’s purchase of most of his public equity book helped spark a partial rebound in battered AI shares.

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?