JPM Flows Liquidity TM

J P M O R G A N Global Markets Strategy 06 August 2026

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Flows & Liquidity TMT Equity Sector and Multi Strat hedge funds at the center of July’s deleveraging

Global Markets Strategy Nikolaos Panigirtzoglou AC • Preliminary data from Pivotal Path suggest that TMT Equity Sector ( hedge funds lost an unprecedented 10% in July excluding the Situational Awareness loss. Multi Strat funds lost 2.3% in July, the fourth-worst J.P. Morgan Securities plc episode in their history. Mika Inkinen ( • The severe loss in July makes it likely that the capacity of TMT Equity Sector and Multi Strat hedge funds to hold tech exposures would be J.P. Morgan Securities plc structurally more limited going forward. Mayur Yeole • If this assessment proves correct and the capacity of hedge funds to hold ( tech exposures is structurally reduced, the tech trade would become over J.P. Morgan India Private Limited the longer-term even more dependent on retail investors and thus more Krutik P Mehta susceptible to the swings emanating from leveraged ETFs, retail option ( buying and retail margin accounts. J.P. Morgan India Private Limited • Covering of yen shorts post fx intervention in a similar fashion to end- April/early-May. • Room for policy uncertainty to push UST term premia higher. Cross Asset Positioning Monitor • The flows into hyperliquid ETFs stalled in July and August after surging Current level shows the latest percentile, Min is denoted by 0 and Max by 1. in May and June. • Flows & Liquidity will not be published next week due to holidays. The next issue will be published on August 19th.

Cross Asset Fund Flow Monitor Current level shows the latest percentile of weekly flows; Min is denoted by 0 and Max by 1. As of 29th July 26.

Source: J.P. Morgan Flows & Liquidity. Cross Asset Positioning Monitor aggregates across the various position indicators of Appendix ranging from positioning proxies across various futures contracts, momentum signals as proxies of how trend-following funds/ CTAs are positioned, mutual fund betas as proxies of how mutual fund managers are positioned, risk parity fund positioning and leverage proxies, hedge fund betas as proxies of how hedge fund managers are positioned, client surveys, asset allocation estimates of private non-bank investors at global level, short interest indicators, etc.

Source: Lipper, ICI, Bloomberg Finance L.P. and J.P. Morgan Flows & Liquidity. * US LL historical flows are monthly averages converted to weekly for comparison. China onshore A-share ETFs have been excluded.

See page 28 for analyst certification and important disclosures.

J.P. Morgan Securities plc Global Markets Strategy Nikolaos Panigirtzoglou AC 06 August 2026 JPMORGAN (

• Preliminary hedge fund performance data by Pivotal Path pandemic crisis of March 2020, or the Lehman crisis of revealed that TMT Equity Sector and Multi Strat hedge 2008, or the collapse of the dot com bubble in 2000 to see funds have been at the center of hedge fund deleveraging larger losses for Multi Strat funds. and forced tech position liquidations in July. The former Figure 3: Monthly performance of Multi Strat hedge funds lost 10.2% in July while the latter lost 2.3%. In %. • Given their more diversified equity exposure, Equity 6.0% Long/Short hedge funds were flat in July helped by a flat Multi Strat

MSCI AC World index on the month. Similarly, Discre- 4.0%

tionary Macro hedge funds were slightly up in July given 2.0% their more diversified exposure across equity indices and 0.0% across asset classes. -2.0% • It is worth emphasizing that the 10% loss for TMT Equity Sector excludes Situational Awareness, which reportedly -4.0%

saw its assets collapsing from $45bn to $10bn. This -6.0% makes the 10% loss look even more striking and suggests that, like Situational Awareness, several other TMT Equi- -8.0% ty Sector hedge funds suffered from forced liquidations of…