The hedge fund’s losses erased much of its first-half gains as semiconductor and AI equities tumbled sharply last month.
Whale Rock Capital’s flagship hedge fund declined 21.7% in July, wiping out a significant portion of its earlier-year performance. The drop was driven by a steep selloff in artificial intelligence and semiconductor stocks, sectors that had previously fueled the fund’s strong returns.
The fund had posted robust gains in the first half of 2024, but July’s downturn reversed much of that progress. The selloff reflects broader market volatility in tech-heavy sectors, particularly those tied to AI infrastructure and chip manufacturing.
No immediate market reaction was detailed, though the decline highlights growing investor caution in high-growth tech equities.