Japan-focused hedge funds experienced their largest single-day performance decline on record, dropping 3.7% on Monday, according to Goldman Sachs. This decline contributed to a total loss of 7.6% over the past three trading sessions. The losses were attributed to a global stock rout triggered by a soft U.S. jobs report and a recent rate hike by the Bank of Japan. Monday also saw the largest single-day selling activity since the COVID crash in March 2020. Despite the significant losses, hedge funds engaged in substantial buying activity on Monday, purchasing stocks at the fastest pace since March, reversing a months-long selling spree.