"Pnl Protection > Pnl Generation": Goldman Warns Still-Crowded Mag7 Is The Next "Source Of Funds"

October was the month the AI trade finally broke... and the hedge funds that own it broke with it.

"Another week of extremes to close out month-end," is how Goldman's Ryan Sharkey opens his latest weekend wrap, "Extremes" (available to pro subs), and the list that follows reads like a stress test nobody signed up for: the Nasdaq 100 suffered its worst month of underperformance vs. the equal-weighted S&P since 2002, the SOX broke below its 200-day moving average for the first time since June 2025, TMT-focused hedge funds lost 11.9% in October, and Goldman's HF VIP vs. VIP Short basket had its third-worst month in 15 years. Meanwhile, the S&P ex-AI just posted its best month since the launch of ChatGPT, up 7.64%!