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Market turmoil splits hedge funds into macro winners and tech losers

War and rising inflation widen the gap between best and worst performers

Market turmoil driven by Russia’s invasion of Ukraine and rising inflation has sharply divided the hedge fund industry, with macro hedge funds celebrating one of their best-ever starts to a year while technology and growth funds rack up double-digit losses.

The top 10 per cent of hedge funds gained an average of 24.3 per cent in the first quarter, while the bottom decile dropped by 15.4 per cent, according to HFR, which tracks the sector. The dispersion is one of the widest since the financial crisis.

The industry as a whole suffered losses of 0.3 per cent for the first quarter, as measured by the HFRI fund-weighted index, and larger funds tended to do better than small ones.

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