Hedge funds are taking a hit by exposure to U.S.-listed China stocks, Goldman says

A trader works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 19, 2021.
Andrew Kelly | Reuters

Chinese ADRs, once hedge funds' growth darlings, have become a big drag on the industry's performance due to a massive sell-off in these names amid a crackdown from Beijing.