A popular hedge fund style is struggling in 2026. Here's why firms like Freestone Grove and Holocene have lost money.

Business Insider | 10-09-2026 05:32pm |

Diversified, market-neutral equity hedge funds have struggled in 2026. The stock market's gains this year have been driven largely by enthusiasm for artificial intelligence. Funds such as Freestone Grove and Holocene have lost money despite investing in equities. The average market-neutral equity hedge fund is up less than 4% this year and has lost money this quarter, according to PivotalPath.

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