HEDGE FUND VARA PLUNGES 33 % IN BRUTAL OCTOBER FOR AI STOCKS

What happened: Value Aligned Research Advisors (VARA), a hedge fund concentrated in the AI trade, fell 33% in October as AI stocks sold off. Key numbers: VARA down 33% in October, still up 13% for the year on Class C shares, and down 44% in July. Nasdaq 100 fell 6.7% in October. Why it matters: The rout was driven by anxiety over whether AI profits can justify the debt technology companies are taking on to build models. VARA said it remains healthy and stable, with no material changes to counterparty relationships and leverage at the low end of its historical range.

Value Aligned Research Advisors (VARA), a hedge fund concentrated in the AI trade, fell 33% in October as AI stocks sold off.

The rout was driven by anxiety over whether AI profits can justify the debt technology companies are taking on to build models. VARA said it remains healthy and stable, with no material changes to counterparty relationships and leverage at the low end of its historical range.