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Finance

Asian hedge fund Aspex suffers 16% loss in October tech rout, source says

Published by Global Banking & Finance Review

Posted on November 6, 2026

2 min read

· Last updated: November 6, 2026

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Aspex Management Posts 16% October Loss Amid Asian Tech Stock Rout

Aspex Management's Performance and Market Context

By Summer Zhen

October Losses for Aspex Management

HONG KONG, Nov 6 (Reuters) - One of Asia's largest hedge funds, Aspex Management, posted a loss of about 16% in October when a selloff in AI-linked stocks rattled global markets, a person with knowledge of the matter said.

Significance of the Drawdown

It marked one of the biggest monthly drawdowns for the $14 billion Hong Kong-based fund, according to the source.

Year-to-Date Performance

But the fund, focused on pan-Asian equities, is still up 9% this year through October, the source said.

Background on Aspex Management

Aspex Management, founded by former Och-Ziff Capital Management Asia equities head Hermes Li, did not immediately respond to a Reuters request for comment.

Market Selloff and Its Impact

AI-Linked Stock Selloff

During October, investors dumped AI-related stocks from chipmakers to hyperscalers amid ‌growing skepticism about whether they will gain sufficient returns from massive investments in the sector.

Global and Regional Index Performance

The Nasdaq Composite dropped 5%, while in Asia, the tech-heavy Korean KOSPI index and Taiwanese benchmarks lost 16% and 6% respectively. The Star 50 index, a gauge of China's high-tech firms, slumped 24%.

Regulatory Fears and Further Declines

The selloff has gained momentum this month after big wins for the Democrats in the US midterm elections fuelled fears of more regulatory scrutiny for the industry.

Hedge Fund Sector Performance

Asia was the worst-performing region last month among the equity long-short hedge funds tracked by Goldman Sachs. Asian stock pickers fell 8.3% on average, compared to a 2.5% decline globally.

Aspex Management's Investment Activity

Aspex has been an active cornerstone investor in Hong Kong listings this year, and was among the backers of AI startup MiniMax and optical transceiver company Zhongji Innolight.

(Reporting by Summer Zhen; Editing by Edwina Gibbs)

Key Takeaways

  • Aspex endured one of its largest monthly drawdowns, losing 16% in October amid a global sell‑off in AI‑linked stocks.
  • Despite the October tumble, the $14 billion fund is still up roughly 9% for the year through the end of October.
  • The tech rout mirrored broader regional and global trends—including a 5.3% slide in the Nasdaq and a 16% drop in South Korea’s KOSPI—as investors pulled back from AI and semiconductor exposure.

Frequently Asked Questions

How much did Aspex Management lose in October?
Aspex Management posted a loss of about 16% in October.
What caused the loss for Aspex in October?
A selloff in AI-linked technology stocks rattled global markets and contributed to the fund's loss.
Is Aspex Management still positive for the year?
Yes, Aspex is still up 9% for the year through the end of October.
Who founded Aspex Management?
Aspex Management was founded by Hermes Li, the former Asia equities head at Och-Ziff Capital Management.
Which markets were most affected by the October tech rout?
The Nasdaq Composite, Korea's KOSPI, Taiwanese benchmarks, and China's Star 50 Index were among the hardest hit.

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