The first quarter of 2026 proved challenging for many prominent hedge funds including Balyasny Asset Management and ExodusPoint, as geopolitical tensions and market volatility weighed on performance, according to a report by Business Insider.

Dmitry Balyasny’s $33bn firm fell 4.3% in March, leaving it down 3.8% year-to-date, while Michael Gelband’s ExodusPoint, which focuses more on fixed-income strategies, declined 4.5% in March. London-based LMR Partners’ multi-strategy fund meanwhile, lost 2.4%.

Asia-based multi-strategy managers Dymon Asia and Pinpoint Asset Management fell 4.3% and 2.5% respectively for the month but remain positive for the year.

Some managers though mitigated losses: New York-based Schonfeld Strategic Advisors was flat in March and up 0.9% year-to-date.

Market headwinds included the ongoing Middle East tensions, which drove energy prices higher, and macro trades that backfired, such as bets on falling short-term interest rates in the UK and Europe. Earlier in Q1, software stocks sold off amid investor unease over AI developments from start-ups like Anthropic.

The S&P 500 posted its worst quarter since 2022, down 4.6%, reflecting a volatile environment that tested both macro and multi-strategy funds.

Dmitry Balyasny’s $33bn firm fell 4.3% in March, leaving it down 3.8% year-to-date, while Michael Gelband’s ExodusPoint, which focuses more on fixed-income strategies, declined 4.5% in March. London-based LMR Partners’ multi-strategy fund meanwhile, lost 2.4%.

Asia-based multi-strategy managers Dymon Asia and Pinpoint Asset Management fell 4.3% and 2.5% respectively for the month but remain positive for the year.

Some managers though mitigated losses: New York-based Schonfeld Strategic Advisors was flat in March and up 0.9% year-to-date.

Market headwinds included the ongoing Middle East tensions, which drove energy prices higher, and macro trades that backfired, such as bets on falling short-term interest rates in the UK and Europe. Earlier in Q1, software stocks sold off amid investor unease over AI developments from start-ups like Anthropic.

The S&P 500 posted its worst quarter since 2022, down 4.6%, reflecting a volatile environment that tested both macro and multi-strategy funds.