On August 6, JPMorgan's assessment indicated that tech stocks may become more reliant on retail investors following the sell-off in July, leading to increased volatility. JPMorgan strategist Panigirtzoglou noted that Pivotal Path data showed related hedge funds lost over 10% in July. This drawdown does not account for the Situational Awareness fund, which was forced to sell off most of its public equity portfolio last week after semiconductor and tech stocks were sold off. Panigirtzoglou believes this suggests that other long-short hedge funds focused on tech stocks may also face forced liquidations.
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