Macro hedge funds have decreased their negative sensitivity to the equity market in recent months, according to JPMorgan strategists.

In a note, a team including Nikolaos Panigirtzoglou stated that speculative long positioning in US equity futures is near its long-run median level. This suggests that positioning from these investors in US equities is not particularly high and could potentially increase further.

The strategists pointed out that short interest on the SPY ETF has only partially reversed the sharp increase that occurred around the time of the ’Liberation Day’ tariff announcements earlier this year, indicating some caution remains in the market.

JPMorgan also noted that US balanced mutual funds’ equity beta returned to below average levels in the past few weeks. Similarly, the equity beta of risk parity funds moved below average starting in late September.