Brazilian hedge funds endured their worst month in six years during March as oil prices surged, disrupting widespread bets on lower interest rates globally. This popular strategy among local money managers backfired spectacularly, wiping out anticipated gains. The sector's performance deteriorated sharply, marking the most significant decline since 2020. Oil prices climbed sharply, forcing many funds to unwind positions prematurely to cover losses, while others faced margin calls. This volatility highlights the fragility of interest-rate hedging strategies in emerging markets when commodity prices swing unexpectedly.