JPMorgan Says Hedge Funds Hit by Worst Drawdown Since April (1)

Hedge funds are experiencing the biggest drawdown since the Liberation Day tariff turmoil, as unwinds in crowded trades punish the fast-money cohort, according to JPMorgan Chase & Co. strategists.

Since the start of the Iran war, quants like commodity trading advisers have been hit by their worst stretch in almost a year, the strategists said in a note Wednesday. Equity long-short hedge funds have also posted heavy losses due to their overweight positions in European and Korean markets and their underweight in software names, according to the bank.

CTAs typically ride the momentum of futures markets of all stripes to ...