March Madness: Hedge Funds and Banks Take a Beating

The market turmoil in March has caused many macro and trend-following hedge funds to suffer losses and cut bad portfolio bets. Algorithmic commodity trading advisor funds (CTAs) have also been hit hard, with losses of 6.8% this month. Hedge fund strategies based around macroeconomic ideas have also posted negative performances. The sudden collapse of two regional US banks and Swiss lender Credit Suisse has caught many hedge funds off-guard and left them with unexpected losses. CTAs have cut their entire long exposure of roughly $60 billion in equities in two weeks and are also cutting credit exposure.