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Hedge fund pullback after July tech selloff could shift market balance

JPMorgan strategists said some large hedge fund groups absorbed heavy losses during the July selloff and may reduce purchases going forward.

Reported · Written up by our desk · Hedge Funds

MarketWatch reports that JPMorgan strategists warn the market could become more dependent on retail trading if hedge funds buy less tech stock after the July selloff.

According to the report, some major hedge fund groups took heavy hits in that decline, and JPMorgan expects their participation in those stocks to diminish.

The strategists said this change in buying could reduce hedge funds role as a stabilizing force, leaving retail traders to play a larger part in day to day price action.

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