A highflying hedge fund blocked investors from leaving at the start of the year. It promptly went on a losing streak. 

Armistice Capital, a stock-picking firm that began 2025 with about $2 billion in assets under management, lost money in April for the third consecutive month, people familiar with the matter said. Investors unhappy with the performance can’t leave anytime soon. Under new terms that went into effect Jan. 1, the firm locked up investors’ money for all of 2025, The Wall Street Journal previously reported.