Global hedge funds suffer worst losses since 'liberation day' on Iran war turmoil
Why it matters: Geopolitical shocks are eroding hedge‑fund diversification, hitting every major strategy class.
- JPMorgan warns hedge funds’ losses are the worst since the “Liberation Day” tariffs, highlighting the rapid unwind of growth‑heavy and short‑dollar positions.
- AlphaSimplex (Kathryn Kaminski) points to heightened inflation fears and a risk‑off mood driven by soaring oil prices as the catalyst for equity and emerging‑market pain.
- Hedge Fund Research shows long/short equity funds down 3.4% in March, while Agecroft Partners (Don Steinbrugge) notes global macro and CTA strategies also slipping ~3%, defying their usual volatility edge.
- MSCI World Index fell >3% since Feb 28, as the U.S. dollar index rose ~2%, stripping risk assets of the dollar‑weakness support they once had.
Hedge funds are logging their deepest drawdowns since Trump’s “Liberation Day” tariffs as the Iran conflict spikes oil, fuels a risk‑off shift, and forces the unwinding of crowded growth and short‑dollar bets—dragging down equities, macro and CTA strategies alike.
