Hedge Funds Decimated Last Week: Goldman Sachs

Goldman Sachs Portfolio Strategy Research's "US Weekly Kickstart" of March 28th highlighted how the flattening of the yield curve led to a major change in investor sentiment last week, and resulted in one of the largest weekly losses for hedge funds since 2001. A proprietary index serving as a proxy for long-short hedge fund performance developed by Goldman Sachs was down more than 3% last week.

GS analysts David J. Kostin et al. offer an overview of their projections for the next few quarters. "Our rates strategists expect the curve to flatten further in 2Q but over the medium term both higher rates and a flatter curve are positive...