JPM Positioning Intelligence HFs Fade Mag7 While Covering Shorts Elsewhere

Positioning Intelligence | Weekly Wrap TPM hits "Attractive" Signal Into Earnings; HFs Fade Mag7 While Covering Shorts Elsewhere July 24th, 2026

Summary below – Distribution of the full report is restricted. To request access pls contact

1. US TPM 4wk change triggered the -1.5z "attractive" threshold. Aggregate positioning is light (US at 19th %-tile, Europe at the 18th %-tile, China at the 33rd), which has historically been a supportive setup for equities. 2. HF performance improved this week, gained +0.6% globally across all strategies. US bounced back, Europe ticked lower and Asia improved marginally. 3. HFs fading Mag7 into earnings. Nearly -1.5z net selling over the past 5d into a -7% slide, with L/S ratio falling to the 18th %-tile. Software seeing notable short covering, though positioning remains far below average. 4. Crowding risks haven't fully cleared. Despite the drawdown, global Semis L/S is still at the 98th %-tile and Tech HW at the 86th %-tile. The positioning unwind has lagged the price unwind. 5. US (ex-Tech): Short covering in beaten-down areas continues—Regional Banks (JP2RBK) and Low-End Consumer (JP77LCON) are rebounding off low positioning. Health Care was mixed (buying Med Tech (JP2MTC)/Tools (JP11TOOL) vs. selling Pharma (JP2PHA)/Biotech (JP2BIO)); Refiners (JP2REFN) look constructive, but HFs stayed neutral (L/S 51st %-tile) and de-risked. 6. APAC (rotation): Clients bought China (onshore) and Japan, funded by selling Korea/Taiwan— Japan is back toward prior highs, while China is ~average (52nd %-tile) on long adds (+~3z WoW/MoM). Korea/Taiwan saw heavy selling with positioning still elevated (84th/74th %-tile); AxJ selling was Semis/Tech (1–2z) with buying in Cyclicals/Consumers/Gold. 7. EMEA (defensive tilt): Selling hit higher-positioned pockets (EU Semis, China Revenue baskets, AI Facilitators), while buying showed up in low-positioned areas (EU Autos, AI Disruption, Bond Proxies, Pharma, Trade Tariff Losers). Pure Oil was net sold despite ~92nd %- tile positioning.

Bottom line: The setup is getting incrementally more constructive with the TPM at "attractive" levels, and HF performance improving (especially in the US). Short covering in Software, Consumer, and Fins suggests breadth could be improving. That said, risks remain, both Geopolitical and Crowding, so we'd expect continued choppiness until earnings provide more clarity on the AI capex trajectory.

John Schlegel | | Jigar Vakharia | | Sunny Potharaju | |

This material (“Material”) is not a product of J.P. Morgan’s Research Departments and should not be viewed as a research report. The Material is provided by J.P. Morgan’s Prime Finance business for informational purposes only. This note highlights some notable trends observed in positioning within the J.P. Morgan Prime Finance portfolio. This Material includes data and viewpoints from various departments and businesses within JPMorgan Chase & Co., as well as from third parties unaffiliated with JPMorgan Chase & Co. and its subsidiaries. The generalized hedge fund and institutional investor information presented in this Material, including trends referred to herein, are not intended to be representative of the hedge fund and institutional investor communities at large.

JP Morgan Positioning Intelligence

DISCLOSURE FOR INSTITUTIONAL & PROFESSIONAL CLIENTS ONLY – This material is from a Sales and Trading department and is not a product of the Research Department. This material has been prepared by personnel in the Sales and Trading Departments of one or more affiliates of JPMorgan Chase & Co. (together, “J.P. Morgan”) and not by J.P. Morgan’s Research Department and therefore, has not been prepared in accordance with legal requirements to promote the independence of research, including but not limited to, the prohibition on the dealing ahead of the dissemination of investment research. It is not a research report and is not intended as such. It is for distribution to institutional and professional clients only and is not intended for retail customer use. Unless otherwise specifically stated, any views or opinions expressed herein are solely those of the individual author and/or the specific…