Balyasny Asset Management and Verition Fund Management both posted losses in July as a broad selloff in artificial intelligence stocks punished funds with exposure to the sector’s high-flyers. Balyasny dropped 1.5% for the month, dragging its year-to-date return down to a modest 1.2%. Verition fared slightly better with a 1.1% decline, leaving it up 4.5% through the first seven months of 2026. Multi-strategy hedge funds like Balyasny and Verition operate dozens or even hundreds of portfolio management teams across equities, credit, macro, and quantitative strategies. A 1.5% drawdown suggests the AI selloff was broad enough to hit multiple teams simultaneously, overwhelming the diversification benefit that is supposed to be the whole point of the platform structure.