Europe Rallies, Hedge Funds Sell Anyway

Continue to overstay

We continue to stay long our macro tourist trade in Europe. The theme continues to be "it will continue to get less worse". We find incremental support for the trade when looking at the latest hedge fund data - as positioning is very low. Will 2026 be Europe's year finally? Strongly doubt it, but we continue to hold on to this low risk low return trade.