Hedge Fund Manager De Langlade's Strategy Fund Surges 31% Year-to-Date Despite Bearish U.S. Equities Bets

Edouard de Langlade, a seasoned macro hedge fund manager, is currently navigating one of the most successful phases of his over two-decade career. However, his bearish bets on U.S. equities have been particularly challenging, despite his continued short positions. According to an investor document, his 1.6 billion dollar EDL Global Opportunities strategy fund achieved a 7.3% return in the month following the global market volatility triggered by the tariff war. This document also revealed that the fund had previously recorded a monthly gain of over 14%, marking its best performance to date. Year-to-date, the fund has surged by 31%, making it one of the top-performing funds of 2025.

EDL profited from volatility bets linked to the S&P 500 index last month, but de Langlade confided to his clients that the past decade of shorting U.S. equities has been excruciating due to the perceived American exceptionalism. While the policies have shaken investors' faith in this notion, de Langlade was astonished that the S&P 500 index ultimately closed flat in April. "I must be a masochist to keep shorting the S&P 500," de Langlade wrote in a recent letter. "Even with the Federal Reserve standing pat, the index has rebounded. It's unbelievable. I'm starting to think that only divine intervention could cause it to decline for more than a month."

Despite the challenges, de Langlade's hedge fund maintains its short position on the S&P 500 index. He anticipates that the index will oscillate between 5,500 and 5,800 points for the next one to two months before retesting its recent lows during the summer. The downgrade of the U.S. credit rating, stripping it of its top-tier status, has pushed the 30-year bond yield above 5%, further intensifying market pressures. This move, de Langlade noted, has pushed the 30-year bond yield above 5%, further intensifying market pressures.