Hedge funds focused on artificial intelligence and machine learning as tools for investment have long been viewed as the future of the industry by many analysts. However, the figures from February paint a picture that is far less optimistic. A recent report by Bloomberg, citing information by Eurekahedge, reveals that this group of hedge funds saw its worst month on record in February. The poor performance was tied with the first equity correction in about two years, meaning that cross-asset correlations shifted, overturning the AI strategies which were usually seen as reliable indicators of market movement. The Hedge Fund Research index, tracking all discretionary funds, posted a 2.4% decline for February.

Hedge funds focused on artificial intelligence and machine learning as tools for investment have long been viewed as the future of the industry by many analysts. However, the figures from February paint a picture that is far less optimistic.