JPMorgan Says Long Momentum Portfolio Had Its Worst Month Since 1985

JPMorgan's global markets strategy head Dubravko Lakos-Bujas said the bank's long momentum portfolio underperformed the broader market by 11% in October 2026, its worst monthly result in a data series dating to 1985. JPMorgan characterized the performance as roughly a six-standard-deviation move. The 11% figure describes the portfolio's result relative to the broader market. The bank tied the reversal mainly to a rapid selloff in artificial intelligence-related stocks. Investors worried that heavy spending on artificial intelligence might not generate sufficient returns and that liquidity was tightening. Hedge funds sold global technology stocks at their fastest net pace since 2016. The Nasdaq 100 ended October down about 5.3% and had its largest single-day decline since the pandemic.

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