Below we summarize the latest observations on flows and positioning metrics across markets, from JPMorgan's Positioning Intelligence and Delta One teams (full note available to pro subs).
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SUMMARY:While equities continued to grind higher last week, turnover has been subdued, and HF performance has further improved since mid-month (now +1.1% MTD vs. flat MTD as of 8/15) though HF alpha has been mixed. Futures were likely part of the driver of increased positioning last week, which is starting to reverse from when futures were arguably a big driver of the sell-off in late July to early Aug. In contrast, HFs continued to sell stocks in N. America into the market strength and retail investor flows in single-stocks turned negative last week as well (5d retail flows in single-stocks were in line with the weakest we’ve seen YTD).
