FACTBOX-Hedge funds' 2026 gains dented by tech trades in July, JPMorgan says

Leverage levels started and ended July at the same values, but wild swings occurred during the month, JPMorgan said, adding that on a five-year basis, hedge fund borrowing remains near all-time highs, but is below the peak of the last 12 months.

Multi-strategy funds fared better than others, ending July with negative 2.2% returns, while stock pickers in the Asia-Pacific region averaged a negative 9.4% return, the bank said.

Global quantitative equity hedge funds that trade less on the economic health of companies but more on their stock market performance, averaged a negative 5% for the month.

JPMorgan's note identified quant hedge funds as the most leveraged strategy it tracked, with an assumed leverage of 450%.