China concerns weighed on Cyclical sectors

Cyclical sectors of China overweights have weighed on relative performance. Positioning in cyclical sectors was elevated and at risk of unwinding amid the heightened volatility. 

Indeed, since the start of the month, energy and materials are down more than 1% and industrials have underperformed by 1%. 

Utilities and staples have been the leaders, as net cyclical positioning has been pared back. Positioning in industrials has been cut considerably and is now modestly underweight, while energy and tech are still slight overweights, financials and materials are still notable overweights.