APAC Equity Style Positioning Crowded Expansion: Momentum at all time highs so keep the hedges on

Research evidence excerpt

APAC Equity Style Positioning Crowded Expansion: Momentum at all time highs so keep the hedges on

J P M O R G A N Global Markets Strategy

15 June 2026

APAC Equity Style Positioning

Crowded Expansion: Momentum at all-time highs so

keep the hedges on

Risk appetite stayed resilient through May and into early June, with Momentum APAC Quantitative Strategy

ACcontinuing to dominate factor leadership. That combination of strong returns and a Robert Smith, PhD

lower‑noise path is the source of the FOMO trade. However, in the past week it has (61-2) 9003-8808

hit some bumps in the road: Momentum has fallen, highlighting how quickly the trade robert.z.smith@jpmorgan.com

can de‑rate when risk preferences reprice. J.P. Morgan Securities Australia Limited

Evan Hu

The message from our style dashboard is all about “manage the extremes”. (852) 2800-8508

Momentum remains crowded and, while its beta profile has started to normalize, it is evan.hu@jpmorgan.com

still biased toward higher‑risk names and is vulnerable to abrupt regime shifts. Last J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

week’s reversal is a reminder that crowding can translate into fast drawdowns even

Arpan Singh

when the broader regime looks supportive. At the same time, dispersion across styles

(91-22) 6157-3301

and sectors remains high, which argues for keeping the positioning flexible rather than arpan.singh@jpmchase.com

assuming persistence. J.P. Morgan India Private Limited

Chris ChiOur QMI remains in Expansion, which keeps the base case tilted to risk‑on factors and

chris.chi@jpmorgan.com

supports staying overweight Momentum. However, the transition into Expansion has J.P. Morgan Securities Australia Limited