Hedge fund managing partner Dmitry Balyasny taps AI as largest tail risk for 2026

Dmitry Balyasny, managing ‌partner and the firm's CIO, said if determination was a fall-off successful request and AI companies --- particularly alleged hyper-scalers -- changed their spending plans due to the fact that they did not execute the monetization they needed, ⁠this would beryllium a ‌surprise to the downside.

Also, an extracurricular hazard the hedge money manager was watching for was if ‍the AI manufacture took disconnected faster than expected. This could origin occupation losses earlier employees were capable to retrain for different opportunities, Balyasny ​said during a fireside chat astatine Abu Dhabi Finance Week.

"Either ‌of those scenarios could make immoderate instability, but I deliberation the much apt result is that it continues to turn the mode that it has," helium said.

Balyasny Asset Management manages $31 billion.

Balyasny, discussing his recently bureau determination successful Abu Dhabi, said the ⁠city was astatine an earlier signifier ​of improvement than New York oregon ​London but said the metropolis was increasing arsenic a fiscal centre.

He pointed to however overmuch wealth was ‍moving into the ⁠region, however endowment was attracted to the manner successful Abu Dhabi and the city's committedness to AI and technology.

The ⁠hedge money returned 2.5% successful November and is up 15.3% for the ‌year truthful far, Reuters reported past week.

(Reporting by Nell ‌Mackenzie; Editing by Dhara Ranasinghe)