The hedge fund’s first monthly trading loss since 2016 was driven by declines in AI and Asian tech stocks.
Jane Street recorded a $15 billion trading loss in July, its first negative month since 2016, due to a steep drawdown in its stake in AI-focused hedge fund Situational Awareness and declines in technology stocks. The firm said hedges failed to offset losses as AI-related positions deteriorated gradually rather than in a sharp selloff.
The loss followed a period of strong performance, with Situational Awareness previously delivering gains in the first half of the year. Jane Street also faced reversals in long positions on Asian stocks outside the AI sector, which had been top performers in prior months.
Despite the July setback, the firm’s year-to-date trading revenue exceeded $40 billion, surpassing its full-year 2025 total of $39.6 billion. Executives noted they have since reduced exposure to the positions that drove the losses.