Why is JPM the largest hedge fund?
Why is JPM considered the largest hedge fund? Highbridge probably accounts for roughly half of the total US$ 53.5 Bn amount, but what is the remaining chunk? http://dealbook.nytimes.com/2010/03/08/JPMorgan-tops-list-of-biggest-hedge-fund-managers/
Does this link offer any insight perhaps? http://www.businessinsider.com/the-twenty-hedge-f…
Uhhh it says it right there:
"The bank’s two hedge fund units, JPMorgan Asset Management and Highbridge Capital Management, came out on top with a combined $53.5 billion in assets under management as of Dec. 31, the publication said."
Yup but what I mean is JPMorgan Asset Management mostly manages mutual funds I thought? Do they have alternative strategies groups as well?
JPMorgan AM: "More than 800 investment professionals providing over 200 different strategies spanning the full spectrum of asset classes, including equity, fixed income, cash liquidity, currency, real estate, hedge funds and private equity"
This is an example of where the definition of hedge fund gets somewhat complicated. Asset managers that aren't traditionally viewed as hedge funds may have "hedged" or "alternative" strategies that have some or all characteristics of hedge funds (asset classes like macro or alternative credit, ability to both long and short, leverage, incentive fee structure). Sometimes these are managed in-house, othertimes they have a subadvisor or are set up as a "wrap" or "managed account" with a hedge fund manager or have a fund of funds structure. JPM Asset Management likely has all three.
The way I was explained this is that JPM bought Highbridge in 2004, which at the time was one of the largest hedge funds in the world and still is (under the JPM name). It got incorporated into JPM's AM division, but continued running mostly the same way. JPM's AM division outside of Highbridge does alternative investments as well, but they're not necessarily the "pure" hedge fund you're thinking of, as Kenny said above it could be with a subadvisor or it could be a FoF.
Disclaimer: I'm a student and this is second-hand info. This is somewhat dated information as the guy I talked to about it left JPM in 2007 and hasn't really kept up with it since.
Thanks guys, this is really helpful. For getting into these alternative investment groups, would a CFA be helpful if I'm currently in IBD?
CFA could definitely be helpful, but it really depends on what specifically you want to do for Highbridge or JPMAM. What type of role would you be aiming for? And what type of role do you currently hold?
Would be interested in macro or event-driven. Am currently in IBD
CFA is def helpful if you want to work as an analyst in either strat. If you're in IBD and at least begin the CFA charter, it will show your focus.
Note, event-driven at Highbridge no longer exists and the only global macro funds managed in-house are essentially quant funds, so they typically seek the PhD candidates.
Good insight, thanks Ron. Would S&T experience be more relevant than CFA for a macro role?
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