(Reuters) – Hedge funds that pick stocks have lost 2022, research companies and investors said. Markets went through a wild ride fueled in part by rising interest rates.

Source: Morgan Stanley According to an anonymous source, the global hedge fund market was down 3.1% during the first three weeks in January according to the NYSE: Morgan Stanley refused to comment.

According to data that tracks returns for the first three week of each month, U.S.-based funds which pick stocks showed a grim picture with the average fund down 5.9%. The data was provided to clients on Tuesday.

But hedge funds still outperformed the broader stock market S&P 500 Index which was off 7.4% during the first three weeks.

Since then, market losses have grown, with the S&P now down 8.7%. Hedge Fund Research data shows that the HFRX Equity Hedge index fell 3.34% by Tuesday’s end.

The markets have been watching closely for more information about when and how Russia-Ukraine tensions might play out.

The turmoil this year comes after stock market gains of 27% last year. This was due to technological advancements.

Max Gokhman is the chief investment officer of Alpha TrAI. He stated, “For a while, investing in technology stock was a great deal where you made easy profit,” “But the Federal Reserve now takes the money away and sends clear signals that they will not be fueling stock market boom.”

Investors should be aware that they could lose their initial investments if they start betting on stocks going down, and they need to carefully choose the ones that they believe will rise.

William Ackman, a billionaire hedge fund manager, may have been the one to grab a share in Netflix after it was sold. Although his fund suffered a 13.8% loss through January 25, he is known for making well-timed investments that increase year end returns.

Gokhman stated that “theoretically, this year could have a stock picking market.”