Iran conflict hits hedge funds hard; giants like Millennium and Balyasny give back early-year gains

```

Several top global multi-strategy hedge funds recorded losses in March, with gains accumulated in the first two months being partially reversed to varying degrees.

On April 2, Bloomberg cited sources stating that well-known multi-strategy funds such as ExodusPoint, Balyasny, and Millennium all experienced losses in March. According to JPMorgan strategists, the scale of hedge fund drawdowns this round was the largest since the "Liberation Day" tariff shock. Among them, Commodity Trading Advisor (CTA) strategies posted their worst performance in nearly a year, and equity long-short funds that were overweight in European stocks also suffered significant losses.

However, there were a few winners amid market turmoil. The Alpha fund under Kepos Capital and Switzerland's ADAPT Investment Managers both achieved positive returns during this volatility, bucking the trend.

Oil prices soar, simultaneous losses in bonds and stocks, multi-strategy funds collectively falter

The continued escalation of the Middle East conflict is the core trigger for this round of market turbulence. Disruption in the Strait of Hormuz directly pushed up oil prices, raising concerns about a resurgence of inflation. Investors repriced interest rate paths, resulting in massive sell-offs in the bond market, while the stock market weakened simultaneously. Soaring oil prices and simultaneous losses in bonds and stocks made it difficult for multi-strategy funds, which rely on diversified multi-asset allocation, to effectively hedge risks.

According to Bloomberg, the most concentrated losses were among multi-strategy hedge funds. ExodusPoint, Balyasny, Millennium and similar institutions had heavy positions in European stocks and other directions; the sharp market fluctuations triggered intense pressure for forced liquidations.

Against the backdrop of universal losses, some funds managed positive returns through differentiated strategies. Kepos Capital’s Alpha fund and ADAPT Investment Managers stood out as rare winners. This indicates that during systemic volatility caused by geopolitical shocks, a fund's strategic positioning and risk exposure structure are decisive for its performance, and there is notable differentiation within the market.

Risk warning and disclaimerThe market entails risk and investment should be cautious. This article does not constitute personal investment advice and does not take into account the particular investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. Investment based on this is at your own risk. ```