Hedge funds are making headlines today as markets grapple with volatility and strategic shifts. Goldman Sachs reported that on Friday, hedge funds unwound single-stock positions at the largest scale in over two years, a move reminiscent of the de-risking seen in March 2020 during the early COVID-19 crisis. This aggressive sell-off, detailed in a Monday note, coincided with a sharp 4% drop in the Nasdaq, driven by fears of a U.S. recession spurred by President Donald Trump’s tariff policies. Leverage in the industry is at a record high—2.9 times equity positions, per Goldman Sachs—raising concerns that further de-leveraging could stall any market recovery. The unwind hit crowded trades across 10 of 11 global sectors, with industrials and U.S. stocks taking the biggest blows. By Monday morning, long/short equity funds were down 1.5%, while systematic funds lost 0.3%.

Elsewhere, Reuters highlighted that macro hedge funds are outperforming in 2025’s volatile markets, capitalizing on global economic swings. EDL Capital, for instance, posted a near-17% return through March 7, thriving amid a wild March where German bonds and the euro saw historic moves. In contrast, stock-picking and multi-strategy funds have delivered mixed results, with Goldman Sachs noting that global stock pickers ended last week with just a 1% average return for the year after a tech-driven sell-off.

Bloomberg added that weather’s growing impact on markets is catching hedge funds’ attention, from private credit liquidity to commodity futures, though specifics on fund moves today were sparse. Meanwhile, posts on X reflect sentiment tying the unwind to tariff fears and high leverage, with some suggesting an orderly—if tense—market adjustment so far.

In sum, March 11 brings a tale of hedge funds navigating a high-stakes environment: macro funds shine, stock pickers falter, and a massive de-risking wave signals caution as leverage and policy risks loom large.