Equity Book Ends August Net Short: JPM Prime Brokerage

Equity hedge funds reduced net leverage and exposure in the last month as volatility spiked and equities sold off broadly. According to JPMorgan's Prime Brokerage report in hedge fund trends, net exposure declined by -5.6 percent in last month, down from 0.78 to 0.74, whereas net leverage was down by 4.92 percent from 0.66 to 0.63.

Equity book was net shorted in August

The report says that it was second time in the last six months that the JPM prime brokerage portfolio was net shorted in the month. Most short exposure was added through ETFs, whereas equity exposure was flat. The most shorted ETFs...