# Major Hedge Funds Wounded in Iran War Trades; Citadel, Millennium, and Point72 Among Them

Source: Global Market Report

The Iran conflict triggered intense market volatility, severely damaging hedge fund portfolios, with some large funds known for stable returns losing hundreds of millions of dollars last week.

According to a investor letter seen by media, the hedge fund under Coatue Management lost 3.8% last week, and has lost 2.4% year-to-date as of March 6. Sources familiar with the matter said that Castle’s main Wellington hedge fund lost 2 last week, with a decline in macro strategies. The fund has gained 2.9% through February 2023.

Another insider said that ExodusPoint Capital Management’s multi-strategy hedge fund gave back all its gains for the year last week. Due to confidentiality, the source requested anonymity. ExodusPoint had a 2.6% increase in the first two months of this year.

Sources also revealed that Millennium Management, managing $86.7 billion in assets, lost about $1.5 billion in the week ending March 6. Its return was 0.75% as of March 6, with a 2% gain in January-February. Balyasny Asset Management lost 3.5% last week but gained 0.4% in the first two months of the year.

Another insider added that Point72 Asset Management lost 1.1% that week, bringing its year-to-date return to 3.4%. According to their websites, Balyasny manages $32 billion, and Point72 manages $45.7 billion.

An additional source said that Marshall Wace’s flagship hedge fund Eureka lost 3.7% last week, reducing its annual return to 2.4%.

Chris Rokos’s hedge fund company lost 0.17% last week, shrinking its year-to-date return to 2.3%.

A source revealed that Bobby Jain’s hedge fund rose slightly by 0.1% last week, the only known exception among multi-strategy funds. The same source also said that as of March 6, the fund was still down 2.1%. Due to confidentiality, the source requested anonymity.

Representatives of these hedge funds declined to comment.

Widespread Sell-Off

Since the U.S. and Israel launched a series of airstrikes targeting Iranian leadership and strategic sites on February 28, stocks, bonds, and other asset classes have experienced broad sell-offs. As the conflict escalated, concerns about potential production cuts pushed oil prices near $120 per barrel earlier this week, but they retreated after Trump assured that the war would end “soon.” U.S. employment reports and renewed anxiety over the private credit industry also affected investor sentiment.

Hedge funds also suffered from bets against the UK interest rate market, as Middle Eastern turmoil prompted reassessment of Bank of England policy expectations, leading to the worst week in over three years. Over five days ending March 6, the two-year UK government bond yield surged about 35 basis points and continued to rise on Monday.

Bruno Schneller, managing partner at multi-family office Erlen Capital Management, said that when measuring losses, one must consider the current macro environment. In a context of volatile asset classes and increasingly scarce liquidity, even well-hedged portfolios can experience temporary setbacks.

According to previous media reports, Millennium, which manages over 330 teams trading across various asset classes, achieved a 10.5% return last year. Balyasny returned 16.7%, and Point72 17.5%. Castle’s Wellington fund returned 10.2% in 2025, and ExodusPoint 18%.