Macro hedge funds have scaled back their negative exposure to the equity market in recent months, according to strategists at JPMorgan.

In a research note, a team led by Nikolaos Panigirtzoglou highlighted that speculative long positions in U.S. equity futures are now sitting close to their long-term median. This suggests that hedge funds’ positioning in U.S. stocks is neither stretched nor overly defensive, leaving room for further upside if sentiment improves.

The strategists also observed that short interest in the SPY ETF has only partially unwound the sharp increase seen around the “Liberation Day” tariff announcements earlier this year, signaling that some caution still lingers in the market.

JPMorgan added that the equity beta of U.S. balanced mutual funds has recently fallen below average levels. Likewise, risk parity funds’ equity beta slipped under its norm toward the end of September, reflecting a more measured stance among institutional investors.

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