We have successfully navigated our macro portfolio through yet another week of high volatility, especially following Monday’s (in hindsight) outlier event. Risk sentiment has turned, and recession fears are muted for now. With position squaring largely completed, equities have regained momentum.

As we’ve noted multiple times this week, there are strong indications from the Hedge Fund community that exposure to risk assets has increased over the past week. We are now seeing positioning in higher-beta equity pockets return to levels observed in April/May. After extinguishing Monday’s fires, fast money used the sell-off to re-increase exposure.

Chart 1: Equity Positioning is Getting Long