JPMorgan Chase: After the sale of technology stocks, the influence of retail investors has increased, and hedge funds are facing the risk of forced liquidation

JPMorgan strategist Nikolaos Panigirtzoglou and others assessed that after the July sell-off, technology stocks became more reliant on retail investors and experienced increased volatility. According to pivot path data, long short hedge funds in the technology, media, and telecommunications sectors lost over 10% in July. Situational Awareness Fund was forced to sell most of its public stock investment portfolio last week. Nikolaos Panigirtzoglou believes that other long short hedge funds focused on technology stocks may face forced liquidation in semiconductor and storage chip stocks.