Major hedge funds including ExodusPoint Capital Management, Balyasny Asset Management, and Millennium Management reported significant losses in March, wiping out prior gains amid Middle East conflict turmoil. The escalating war disrupted shipping through the Strait of Hormuz, spiking oil prices and triggering bond selloffs. JPMorgan strategists noted this marked the sector's worst drawdown since the 2019 tariff chaos, with commodity traders facing their poorest stretch in nearly a year and European stock-heavy funds suffering heavy losses. Kepos Capital's Alpha fund and ADAPT Investment Managers stood out as notable winners during the month. The sector's performance underscores the profound market volatility driven by geopolitical risk.