The Iran war shatters the traditional diversified strategy! Popular bets are completely destroyed, and hedge funds suffer their most serious losses since Liberation Day.

Due to the escalation of the Iran conflict, hedge funds have suffered significant losses, with oil prices soaring and a comprehensive market sell-off leading to crowded trading collapsing. A team led by Nikolaos Panigirtzoglou, a global market strategist at J.P. Morgan, wrote in a recent report, "Since the outbreak of the conflict, hedge funds have experienced their most severe losses since 'Liberation Day'." Due to rapid fluctuations in stock, currency, and commodity prices, investors have been forced to close positions in global markets. This wave of selling marks a rare moment when traditional diversified investment strategies in the hedge fund sector have proven almost ineffective in providing effective protection. Prior to the outbreak of the conflict, many hedge funds had increased their holdings in assets related to global economic growth, including overallocated stocks and emerging markets, as well as shorting the US dollar. These trades are now being rapidly unwound. Kathryn Kaminski, Chief Research Strategist at AlphaSimplex, stated, "There is a widespread sense of risk aversion in the market, with many traders concerned about inflation and even fearing that rising oil prices could bring negative growth impacts." J.P. Morgan noted that a significant amount of bets that had been shorting the US dollar, especially in emerging markets, had been quickly unwound, eliminating a key source of support for risk assets. Since the outbreak of the Iran conflict on February 28, the MSCI World Index has fallen by over 3%, after reaching an all-time high in early February. Meanwhile, the US dollar index has risen by about 2%. Kaminski added, "As most hedge funds have reasonable exposure to economic growth risks and stock markets, it is expected that they will face difficulties in this environment." Thus far, strategies closely related to stocks have been hit the hardest. J.P. Morgan stated that from a position allocation perspective, stocks seemed to be "easier to hit than bonds," indicating that investors had not completely unwound their risk exposures. Long-short equity funds, a core hedge fund strategy of betting on stock price increases or decreases, performed the worst this month. According to the latest data provided by Hedge Fund Research (HFR), these funds have fallen by around 3.4% in March, compared to a decline of about 2.2% for the entire industry. Surprisingly, strategies that are typically viewed as benefiting from volatility have also performed poorly. Oil shock disrupts traditional investment models "Surprisingly, global macro and commodity trading advisors (CTAs) have performed poorly," said Don Steinbrugge, Founder and CEO of alternative investment consulting firm Agecroft Partners. According to HFR data, global macro strategies fell by 3%, while the CTA index tracking trend-following hedge funds that trade markets such as commodities, currencies, and bonds using algorithms has also fallen by about 3% since the start of the conflict. Steinbrugge stated, "Typically, these strategies perform well as market volatility increases and often are uncorrelated with stock markets." Industry veterans say the rupture of traditional relationships reflects the uniqueness of the current shock. While disruptions in the Strait of Hormuz have led to a surge in oil prices due to interrupt... (Unfortunately, the provided text is too long for a single submission. If you want me to continue translating, please let me know)