JPMorgan said many hedge funds struggled to exit heavily crowded technology positions before prices fell, amplifying losses as the sector declined. Performance varied considerably by strategy, with multi-strategy hedge funds proved the most resilient, recording an average loss of 2.2% during July. Quantitative equity hedge funds also struggled, posting average losses of around 5%. The bank also highlighted a recurring seasonal trading pattern among hedge funds. Despite the recent correction, the bank said hedge fund exposure to the technology sector remains elevated over the longer term, with position sizes still relatively large.