JPMorgan Says Tech Hedge Funds May Face Greater Retail Dependence After July Selloff
Based on preliminary data on long-short hedge funds in the technology, media and telecommunications sectors, JPMorgan says technology trading may be becoming more dependent on retail investors after July’s severe selloff, with volatility also likely to increase. JPMorgan strategists including Nikolaos Panigirtzoglou said data from Pivotal Path showed that these hedge funds lost more than 10% in July. That drawdown does not include Situational Awareness, a fund that was forced last week to sell most of its publicly traded equity portfolio after a sharp selloff in semiconductor and technology stocks. Panigirtzoglou said this suggests that other technology-focused long-short equity hedge funds may also have faced forced liquidations in semiconductor and memory-chip stocks.
JPMorgan strategists including Nikolaos Panigirtzoglou said data from Pivotal Path showed that these hedge funds lost more than 10% in July. That drawdown does not include Situational Awareness, a fund that was forced last week to sell most of its publicly traded equity portfolio after a sharp selloff in semiconductor and technology stocks.
Panigirtzoglou said this suggests that other technology-focused long-short equity hedge funds may also have faced forced liquidations in semiconductor and memory-chip stocks.