The London Whale scared mutual fund PMs out of JP Morgan stock after its sudden appearance earlier this year. JPMorgan Chase shares suffered after the London Whale fiasco, reports Reuters.

Analysts at Bernstein Research revealed that mutual fund managers sold JPM shares after the "London Whale" controversy. The dumping led to JPM falling to its lowest proportion of mutual fund portfolios in at least seven years according to one measure.

Thirty-four out of 100 major mutual funds that were tracked by analysts reduced their stakes in JPM, Reuters reports.

In a note, the analysts led by John McDonald wrote: "JPMorgan's relative weight slipped meaningfully after announcing its ... trading loss. [The stocks are] typically held by mutual funds at a level very close to its index."

The trading loss started at $2 billion but has risen to $5.8 billion since it was announced on May 10.

Shares of JPM fell 22 percent during the second quarter, but stocks have risen 4 percent from June 30 through Tuesday.  

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