The recent drop in technology stocks stems largely from hedge-fund activity rather than moves by long-term investors, says Larry Fink, CEO of BlackRock, the world's biggest money manager.

While the Nasdaq Composite index, which has a substantial tech component, dropped 8.5 percent from its 13-year high March 6 through earlier this month, retail and institutional investors continued to buy stocks during the past few months, Fink said, according to the Financial Times.

"Long-term investors have not been spooked by this volatility, but shown remarkable resilience in attitude," he said. "Much of the volatility was fast-money hedge funds repositioning their trades."

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

Tech stocks suffered the most because of their high valuations and the large positions held in them by just a few hedge funds, Fink said.

All this suggests that the recent correction in stocks may not last, Fink said. Already the Nasdaq rebounded 2.4 percent last week. And the S&P 500 gained 2.7 percent for its best week since July.

Hedge funds apparently weren't quick enough to exit tech stocks this month.

A bunch of multibillion-dollar funds have suffered major losses in April and are down double digits in percentage terms so far this year, according to investor communications obtained by The Wall Street Journal.

The losing fund managers include Viking Global Investors and JAT Capital Management.

"The big momentum trade has come off. It's a bit of a no-man's-land out there," Jon Yalmokas, head of the Americas prime brokerage for Bank of America, told The Journal.

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

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