The David Lin Report · Wednesday, August 12, 2026
Significant losses reported by major hedge funds in July, such as WhaleRock and Lone Pine, indicate a potential unwinding of leverage in the market. Hayes points to these as 'canaries in the coal mine,' suggesting that despite strong AI-related news, the current rally might be unsustainable.
“So, uh, major hedge funds. These are not amateur hour folks, okay? WhaleRock, down 21.7% in the month of July. Loan Pine, uh, 27%, uh, Altimeter, okay, down 11% in the month of July. Uh, Citadel, okay, down 67%, uh, Vaara, uh, hedge fund down 44%, okay, in the month of July. Not year to date, but in one month.”
“So, uh, there is a lot of leverage that's coming out of this. And what people are mistaking is that there were a lot of people that got aggressively short in the hole, and now you're seeing this violent countertrend move, uh, in the last couple of weeks, uh, and I would be a seller of this move.”
“And the answer is, because that's known. So, what you had in July, you have not seen revenue growth or earnings expectations at levels this high, you know, 15% revenue growth since Q4 of 2021. Okay?”