{"id":90596,"date":"2025-03-13T16:28:38","date_gmt":"2025-03-13T20:28:38","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=90596"},"modified":"2025-03-13T16:33:15","modified_gmt":"2025-03-13T20:33:15","slug":"hedge-funds-surrender-half-their-2025-gains-as-tech-rout-bites","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2025\/hedge-funds-surrender-half-their-2025-gains-as-tech-rout-bites.html","title":{"rendered":"Hedge Funds Surrender Half Their 2025 Gains as Tech Rout Bites"},"content":{"rendered":"\n<p><em>HedgeCo.Net<\/em> (Palm Beach Gardens, FL)<br><\/p>\n\n\n\n<p>Hedge funds are reeling after a tech-driven market selloff erased nearly half their 2025 gains in a single day, according to a Goldman Sachs note that\u2019s making the rounds among prime brokerage clients. Thursday\u2019s bloodbath\u2014sparked by a darkening U.S. economic outlook and uncertainty over President Trump\u2019s tariff agenda\u2014hit stock-picking and multi-strategy funds hardest, exposing crowded trades and testing the mettle of even the savviest managers.<\/p>\n\n\n\n<p>Goldman\u2019s data paints a grim picture: U.S. stock pickers ended Thursday down 1.4%, dragging their year-to-date performance into the red at -0.5%. Globally, equity long\/short funds are clinging to a measly 1% average return for 2025 so far, a far cry from the double-digit hauls of recent years. Multi-strategy outfits, typically a bastion of resilience, weren\u2019t spared either. After three years of consistent gains, these funds have posted losses on 18 of the 29 trading days since January 27\u2014one of the worst streaks Goldman\u2019s tracked in its history.<\/p>\n\n\n\n<p>The culprit? A tech, media, and telecom (TMT) meltdown that caught funds flat-footed. \u201cGlobal hedge funds were overweight TMT coming into this week,\u201d a JPMorgan note confirmed earlier, and the Nasdaq\u2019s 10% correction from its December peak proved a brutal wake-up call. Portfolio managers who\u2019d piled into long positions in these sectors watched their bets unravel as Wall Street\u2019s risk-off mood deepened.<\/p>\n\n\n\n<p>It\u2019s not just the stock pickers feeling the heat. Multi-strategy funds, designed to balance losses across tactics, struggled to offset the equity carnage. \u201cThis was a challenging day across the board,\u201d Goldman understated, noting that even diversified playbooks couldn\u2019t dodge the market\u2019s wrath. Sources whisper that some high-profile names are quietly trimming leverage to avoid further bleed.<\/p>\n\n\n\n<p>Yet amid the gloom, macro funds are holding their own. Rokos Capital Management, for instance, was down just 0.29% through February 21 and remains up 0.57% year-to-date, per an insider. Meanwhile, Andrew Law\u2019s elusive Caxton fund notched a 4% gain in February, pushing its 2025 return to 7%. \u201cMacro\u2019s where the edge is right now,\u201d one allocator told HedgeCo.Net. \u201cEquities are a minefield, but rates and FX are giving nimble players room to maneuver.\u201d<\/p>\n\n\n\n<p>The broader market context is ugly. Trump\u2019s tariff threats have spooked investors, and with the Fed signaling no rush to cut rates, the Nasdaq\u2019s tumble reflects a broader repricing of risk. Hedge funds, long accustomed to riding tech\u2019s coattails, now face a reckoning. \u201cCrowded trades got torched,\u201d says HFR\u2019s Sarah Kline. \u201cThe question is who pivots fastest.\u201d<\/p>\n\n\n\n<p>For the sharp-eyed, there\u2019s opportunity in the wreckage. Distressed debt desks are buzzing, and some managers are already rotating into defensive sectors like utilities and healthcare. Others are eyeing short books\u2014Goldman hints at funds doubling down on bearish bets as volatility spikes. But with U.S. economic data due next week, the path ahead looks treacherous.<\/p>\n\n\n\n<p>Hedge funds thrive on chaos, but this rout\u2019s a gut check. Halfway through Q1, the industry\u2019s licking its wounds\u2014and the clock\u2019s ticking to claw back those losses. Stay tuned.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HedgeCo.Net (Palm Beach Gardens, FL) Hedge funds are reeling after a tech-driven market selloff erased nearly half their 2025 gains in a single day, according to a Goldman Sachs note that\u2019s making the rounds among prime brokerage clients. Thursday\u2019s bloodbath\u2014sparked [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16042,3],"tags":[],"class_list":["post-90596","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-performance-2","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=90596"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90596\/revisions"}],"predecessor-version":[{"id":90597,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90596\/revisions\/90597"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=90596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=90596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=90596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}