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JPMorgan slammed for blaming market sell-off on AI funds

Bank's report claimed AI fund models rushed to unwind positions as volatility rose in early February

Cliff Asness, co-founder and managing principal of AQR Capital Management
Cliff Asness, co-founder and managing principal of AQR Capital Management Photo: Getty Images

The heads of major systematic investment firms have criticised a report by US investment bank JPMorgan, which blamed 12 artificial intelligence hedge funds for exacerbating February’s equities sell-off.

The report claimed the AI funds’ models rushed to unwind positions as volatility rose in early February and the subsequent de-risking played a “big role” in the correction.

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