South Korean shares and a newly listed AI company slid on Oct. 20 as Goldman Sachs’ risk appetite gauge fell below zero, signaling a broader retreat from risky assets.
The measure had not been below zero since April and was at its weakest since the opening period of the Iran war. Investors also moved into U.S. Treasurys despite an inflation reading above forecasts.
South Korea’s Kospi fell 4%. Shares of AI startup Elice lost more than 30% on their first day of trading.
The moves followed an earlier shift in hedge fund portfolios. Goldman Sachs hedge fund clients reduced their technology holdings during the five trading sessions through Oct. 15, Bloomberg News reported. After the cuts, technology made up 23.5% of net allocations in Goldman Sachs’ global prime brokerage accounts, still at the 90th percentile for the past five years.
Those positioning figures reflect client holdings in Goldman Sachs accounts and cover an earlier period than the Oct. 20 market moves.
