Some hedge funds have the flexibility to go long and short securities, which also reflects general market sentiment. This chart shows futures positioning (often used to take long or short positions on the broader market) on the S&P 500 (green) and 10-year Treasuries (gray). As the pandemic hit in March, shorts in equities increased while long positions in fixed income increased. As the economy reopened and the recovery began, the market shifted to net long for both equity and fixed income, reflecting an improving outlook.