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Bank turmoil batters trend-following strategies

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CTAs and trend-following funds tanked following March’s upheaval in financial stocks, while other hedge fund strategies such as equity long/short, macro and event driven struggled to generate meaningful returns, according to Bloomberg data.

CTA strategies in the US lost -4.40% last month, while their EMEA counterparts ended March down more than -9%. Overall, on a global basis, trend-following hedge funds slumped -7.18%, as turmoil stemming from Silicon Valley Bank’s collapse and Credit Suisse’s losses sent markets into a tailspin.

Elsewhere, equity long/short hedge funds were marginally in the red, at -0.29% on a global basis, and almost -1.00% in the EMEA region. But in the US, long/short managers were up 0.09% last month.

Macro hedge funds based in the US added 0.21%, while across the Atlantic they lost -2.44%, leaving them down 0.69% overall on a global basis. Event driven strategies in North America were largely flat, having added just 0.02%, and on a global level fell -0.26%.

Multi-strategy managers and market neutral hedge funds also ended last month in negative territory.

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