A two-sided view of conviction: S3’s Long Interest data — mapped alongside our proprietary Short Interest analytics — captures the full picture of institutional exposure. The Long-to-Short (LTS) Ratio quantifies that balance.

The Long-to-Short ratio (LTS): Calculated by dividing the total notional value of active long positions by the notional value of short positions, the LTS ratio identifies stocks where institutional capital is evenly matched on both sides of the trade. Names with LTS ratios between 0.65x and 1.35x fall into S3’s Battleground Stocks category — a range defined by balance, conviction, and short squeeze risk.

$52B in Battleground short interest: Total U.S. equity short interest stands at $1.45T — roughly 12% of total active long exposure. But in Battleground Stocks, $52B of that short interest is paired with just $53B in active long capital — nearly a 1:1 ratio. That concentration of opposing views, with relatively little passive ownership in between, defines the battleground. Battleground stocks account for nearly 4% of total U.S. equity short interest.

Beyond Indexing: While long-dominated names carry $38T in passive exposure vs. $12T active, Battleground Stocks reverse that ratio. With $53B in active vs. just $20B in passive long capital, they’re a cohort where institutional discretionary capital drives price discovery.

Battleground Stocks Outperform: In July, Battleground Stocks delivered an average return of 25%, compared with top squeeze risk names at 13% and the U.S. equity average at 5%.

Battleground names outperformed in July—with range: Many of the largest notional exposure Battleground Stocks posted outsized returns in July, led by MP Materials (+80%), Rocket Lab (+34%), and Nuscale Power (+25%). When long and short capital are evenly matched, crowded trade sentiment and herd risk amplify volatility.

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