while hedge funds raced to dump us growth stocks including technology in the first quarter amid expectations of higher rates they still failed to cushion the returns from the industry’s worst start of a year on record according to goldman sachs group inc strategists “a plummeting equity market and the even worse performance of the most popular long positions have led to the worst start of a year on record for hedge fund returns” strategists led by ben snider wrote in a note on friday “as a result of these struggles in recent months hedge funds have accelerated the reduction in leverage and rotation away from growth stocks they began several quarters ago”