J.P. Morgan: After a brutal sell-off, the influence of retail investors on tech stock trading may increase.

According to an evaluation by JPMorgan of preliminary data on long-short hedge funds in the technology, media, and telecommunications sectors, trading in tech stocks may be becoming increasingly dependent on retail investors after a brutal sell-off in July, with volatility likely to intensify. JPMorgan strategists, including Panigirtzoglou, believe that data from Pivotal Path indicates these hedge funds lost more than 10% in July. This drawdown does not take into account the Situational Awareness fund, which was forced to sell off most of its public equity portfolio last week after the semiconductor and tech stocks experienced a severe sell-off. Panigirtzoglou suggests that this indicates other long-short hedge funds focused on tech stocks may also have faced forced liquidations in the semiconductor and memory chip sectors.