CTA Stock Longs, Risk Parity Leverage Highest In A Year

Rules-based, systematic investor cohorts and vol-sensitive strategies have increased their equity exposure and leverage to the highest levels in at least a year, helping stocks extend a rally that pushed US shares into a bull market this month. "Momentum traders such as CTAs have been amplifying the equity rally by building up positions, in particular in US tech and Japanese equities," JPMorgan's Nikolaos Panigirtzoglou said. Although discretionary, fundamentals-based investors have (very) rec