Top Performers, Rising Shorts: Momentum Meets Reversal in the S&P 500

We looked at the stocks in the S&P 500 that are up the most year-to-date, and they are PLTR, SMCI, STX HWM, COIN, NRG, GE, NEM, and TPR.

Active and passive ownership trends show clear rotation: active long interest in the group has increased by 13% year-to-date (a gain of 3%), while passive long interest has declined by 2%—highlighting a shift in ownership toward active managers.

Active long interest is rising alongside short covering, while passive-heavy stocks are seeing more short positioning—highlighting conviction in active flows and reversal risk in passive names.

The correlation between active and passive flows is negative, suggesting that as passive investors reduce exposure with index rebalancing, active managers are stepping in—an indication of conviction-driven accumulation.

This dynamic supports a broader theme of rotation from passive to active long interest, with active managers increasing positions to these high-performing names while passives reduce positions—potentially amplifying momentum and ownership concentration.

Active Long Interest is negatively correlated with Short Interest—stocks seeing increased active buying are also experiencing short covering.

Passive Long Interest is positively correlated with Short Interest—stocks held more by passive investors tend to have higher short positions.

The increase in Short Interest during the rally suggests traders may be positioning for a reversal, engaging in hedging, or applying value-based short strategies.

Meanwhile, passive selling during the uptrend also aligns with reversal behavior—systematically reducing exposure as prices move further from index weights.

The rise in Active Long Interest reflects a momentum-driven approach, with active managers increasing positions as prices climb.

Want to know more? Access this data in real time using S3’s BLACK MAP

The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.