"Squeeze risk at the index level is real if we get a breakthrough in the negotiations."
Surprisingly restrainedDespite stocks hovering near all-time highs, positioning data remains surprisingly restrained. Hedge funds are still underexposed, systematic positioning is far from stretched, and bearish sentiment remains elevated in what may be the most unloved rally in years.HF positioning
Momentum crowded at extremes, semis nearing 20% of hedge-fund exposure, systematic funds primed to puke supply in almost any…
Hedge fund short positions against European equities hit 11% of total books, a decade high, as the Iran war drives energy cost…
...from elevated RAI levels very positive returns were less likely, but the frequency of small corrections has increased...
...also argue for pairing constructive risk positions with long volatility exposure to protect against those reassessments and…
...but short interest signals continued risk management...
The latest Global Fund Manager Survey from Bank of America shows sentiment fell to its most bearish reading since June 2025.
