Using S3’s Long MAP product we see that total disclosed long holdings are $64.8 trillion (not all long holdings are disclosed) which is split between $49.3 trillion of passive shareholders and $15.5 trillion of active shareholders. Three quarters of all U.S. shares are held by passive investors while only one quarter are held in actively traded portfolios.

Using S3’s Black App we also see that total U.S. regulatory reported short interest is $2.1 trillion, which is primarily held in actively traded portfolios.

Active long holdings outnumber active short holdings by a factor 7.5 to 1. But there are stocks that have a relatively equal amount of Active Long and Active Short holdings .

We consider stocks with a 0.65 to 1.35 ratio of Active Short holdings to Active Long holdings to be Battleground Stocks. This reflects an equal amount of active long and active short positioning.

The S&P 500 is up +1.45% YTD and the Nasdaq is up +1.24% YTD. The large cap battleground stocks have considerably out-performed or under-performed the general market so far this year.

Using S3 long data from our MAP and regulatory Disclosure products gives insight into the long side of the market by quantifying passive and active holdings on the street. The S3 Black App and short side data product quantifies the “other” side of the portfolio, short selling activity.

Using both products identifies which securities have outsized passive long shareholding and therefore have less market volatility versus stocks that have larger amount of active long and\or active short shareholders. The more actively held stocks have a higher probability of greater volatility and possibly even more importantly, higher gamma – a higher rate of change of the rate of change.

Identify stock characteristics and minimize risk by using the S3 long side MAP and Disclosure products in tandem with the S3 short side Black App.

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.