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Even the smart money got burned. Rokos Capital Management and Brevan Howard Asset Management, two of London’s most prominent global macro hedge funds, lost money in July as a brutal selloff in AI-related stocks rippled through portfolios that were supposed to be insulated from exactly this kind of thing.
Both firms have incorporated tactical equity overlays and options positioning into their strategies, giving them secondary exposure to stocks. When AI names cratered in July, that exposure turned from a nice-to-have into a liability.
They weren’t alone. The damage across the hedge fund landscape was severe. Situational Awareness’s AI-focused fund dropped a staggering 67% in July. Whale Rock Capital Management’s tech fund fell 21.7%. Altimeter Capital’s AI fund declined 11%.
Two funds, one family tree
Chris Rokos co-founded Brevan Howard before leaving to start his own firm. Rokos Capital Management oversees approximately $22 billion in assets. The fund posted a 21% return in 2025 and a 31% gain in 2023. Brevan Howard, founded in 2002 by Alan Howard, has had a more uneven run, with its flagship fund delivering mixed results amid the macro volatility of 2026.
When macro meets momentum
Macro funds added equity exposure through options strategies and tactical overlays, essentially bolting a tech growth engine onto a rates-and-volatility chassis. When AI stocks reversed sharply, those same overlays amplified losses in portfolios that investors expected to behave like traditional macro vehicles.
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