From Yahoo Finance: 2025-04-10 18:03:00

Global equities long/short hedge funds missed out on Wednesday’s U.S. stock rally but limited losses during Thursday’s sell-off. Funds were up 0.98% on April 9, while the S&P 500 surged 9.5%. U.S. hedge funds underperformed, up 2.28%. On Thursday, S&P 500 fell 3.5% and MSCI World index dropped 1.2%.

Global fundamental long/short funds were down 0.7%, while systematic funds were down 0.2%. U.S.-focused funds led with a -1.4% return. Trump paused tariffs on Wednesday, causing a rally in stocks and Treasury yields to pare back gains. Hedge funds with increased short positions were caught off guard.

Hedge funds underwent large net selling and turned bearish, reducing leverage and cutting positions to manage risk. Managers bought U.S. equities at the largest value in a decade due to short covering. Year-to-date, global fundamental long/short funds were down 4.3%, outperforming the S&P 500’s 10.4% drop.

Read more: Hedge funds miss out on US equities rally but suffer smaller losses in volatile two days