Hedge fund managers are increasingly adopting a bearish stance on US stocks, driven by volatility from Donald Trump's tariff announcements. Many are reluctant to place major bets, with the notable exception of shorting US equities, as they prepare for weaker economic growth ahead. Global trade concerns are causing US equities to move in lockstep, complicating efforts by stock pickers to outperform in an already unpredictable market. The S&P 500 index is down by just 2.4% since Trump's 'Liberation Day' proclamation, and stocks are about 10% below their all-time high in February. Some market analysts suggest that the stock market's behavior indicates an expectation that tariffs will not remain in place for a significant duration. Despite the market turmoil, some hedge funds have managed to navigate the volatility successfully. Citadel's flagship hedge fund, Wellington, achieved a 1.3% gain in April, outperforming the broader stock market. Ken Griffin's fund turned positive year-to-date after a challenging first quarter, with its stock fund gaining 2.2% and tactical trading up 1.9%. Other hedge funds also reported gains amidst the volatility. AQR's Delphi Long-Short Equity Strategy saw a 3.2% increase in April, following a strong performance in the first quarter. These gains reflect the ability of some multistrategy hedge funds to capitalize on the market's fluctuations. Analysts expect annual earnings growth of 12%.