DeepSeek Founder's Fund Slumps 16% as AI Rout Hits China Quants

DeepSeek founder’s fund reportedly slumped 16% as an AI-linked stock selloff worsened in China, highlighting volatility across artificial intelligence-related equities. The decline follows a period earlier in the year when AI-related stocks surged, only for prices to drop sharply more recently amid concerns that a “bubble” was forming. Quantitative hedge funds in China experienced some of the steepest drawdowns last week as a local market rout intensified. The article frames the move as part of broader risk-off pressure affecting hedge funds that rely on algorithmic or systematic strategies tied to fast-changing market signals. Although the snippet does not provide figures beyond the 16% drop, it indicates that rapid swings have directly impacted portfolios exposed to the AI thematic trade. The selloff’s timing aligns with a broader correction after earlier rallies in the sector.