Ahead of FED: there has been a lot of selling and de-risking
Hedge fund net leverage now only at 2nd %-tile
Hedge funds have de-risked pretty aggressively. JPM Prime Brokerage: "For All Strategies, gross leverage is at the 43rd %-tile over the past 12M. Net leverage has also decreased across HFs. In particular, the z-score of 4wk changes in net leverage fell to some of the lowest levels we've seen in the past few years. Eq L/S have been the largest net sellers on our books over the past 3 weeks and saw a sharp decline in net leverage over the prior 2 weeks. Even with the market rebounding last week, net buying was limited and net leverage remains at just the 2nd %-tile over the past 12M. From a longer term standpoint, it's still at the 75th %-tile since early 2017 and is right around the middle of its range since early 2020".