Hedge Funds Face Losses Amid Middle East Tensions; Bitcoin Outperforms

Caxton Associates' primary macro fund, valued at $9 billion, experienced a loss exceeding $1.3 billion in March. According to NS3.AI, this downturn followed U.S. and Israeli military actions against Iran, which disrupted shipping through the Strait of Hormuz and drove Brent crude oil prices above $100 per barrel. Additionally, at least nine other significant hedge funds reported losses, including approximately $1.5 billion at Millennium Management and around $1 billion in Citadel's macro and fixed-income portfolios. During this period of geopolitical tension, Bitcoin demonstrated resilience, rising about 7% from the escalation on February 28 through mid-March. This performance surpassed that of the S&P 500, Nasdaq 100, gold, and silver. Furthermore, U.S. spot Bitcoin ETFs saw nearly $700 million in net inflows in March, following a five-week period of outflows totaling $3.8 billion.