The opposite is true.

We hedge our bets (hence the name hedge funds) so that in market downturns, we use the profits from these weird investments that hit the green without liquidating the typical stocks. We use that money to buy the dips on regular stocks, failing businesses, and cheap real estate. Then, the market rebounds, and we still have our SPX without taking losses. You only get richer once you hit approximately $20M net worth and understand this.

Institutional investors love recessions. At my trade desk firm in Chicago (CBOE) during Covid we were each making the firm like $300k/hour scalping retails with a 20% cut.