Hedge funds have suffered the worst losses since 'liberation day' on the Iran war, according to JPMorgan's global markets strategists. This follows a sharp spike in oil prices and a broad market selloff, which has caused investors to unwind positions across global markets. This is a rare moment when traditional diversification within the hedge fund universe has been lacking. Many hedge funds had built up significant global growth exposure, including overweight positions in equities and emerging markets, and bets against the U.S. dollar. The MSCI World Index saw a decline of over 3% since the start of the war. Long/short equity funds, a core hedge fund strategy that bets on stocks going up or down, have been among the worst performers this month. However, strategies typically seen as beneficiaries of volatility have also struggled. The impact of the oil shock has been complicated by inflation fears and concerns about global growth.