The US-Iran conflict ignites the market, with several top hedge funds facing losses of hundreds of millions of dollars

The escalation of the US-Iran conflict has triggered severe fluctuations in global markets, with several leading hedge funds facing losses of hundreds of millions of dollars in just one week. Bloomberg data shows that institutions like Citadel and Millennium have seen significant erosion of their annual returns, with the Eureka fund under Marshall Wace dropping by 3.7%, and ExodusPoint giving back all of its gains from the previous two months. The rare simultaneous sell-off of stocks and bonds has rendered multi-strategy models that rely on cross-asset hedging ineffective, putting the effectiveness of their risk control systems and investor confidence to a severe test