Major hedge funds experienced varying degrees of success in January 2024, with artificial intelligence and technology investments playing a crucial role in their performance. Multi-strategy giants like Millennium, Schonfeld, and Balyasny saw modest gains, while funds heavily invested in AI and tech sectors showed stronger returns. The article highlights how the AI boom continues to influence investment strategies, with many funds increasing their exposure to AI-related companies and technologies. Notable was the performance of funds that maintained significant positions in major tech companies driving AI innovation, such as Nvidia and Microsoft. The market’s enthusiasm for AI-related investments remained strong, though some managers expressed caution about potential overvaluation in certain segments. The report also discusses how hedge funds are not just investing in AI-related stocks but are increasingly incorporating AI tools into their investment processes for better decision-making and risk management. Looking ahead to 2024, many fund managers indicated they would maintain or increase their AI-focused positions, believing the sector still has room for growth. However, there’s a growing emphasis on selective investment in companies with proven AI capabilities rather than broad-based tech exposure. The article concludes by noting that while AI remains a dominant theme in hedge fund strategies, managers are becoming more discriminating in their approach to AI-related investments.