JPMorgan Highbridge Recovers, Investors Elusive

JP Morgan’s hedge fund business, hard hit  in the crisis, partially recovered in the past year but raising capital turned out to be tough. After some changes in staffing and structure, JP Morgan Highbridge is trying again. Will clients be willing to commit money? 

New capital inflows to hedge funds are heavily concentrated in favor of the largest managers—-a trend that could benefit Highbridge. But certain competitors performed better and attracted more of the assets coming to the industry.

Highbridge total assets were at $26 billion at the end of 2010, up from $21 billion one year ago. The increase includes investment returns from various strategies as markets did better. Before the financial  crisis Highbridge reportedly had around $36 billion in assets.

After some layoffs and a prominent new hire announced this week, the business looks to raise $2 billion for its credit fund, according to the Financial Times.

In 2010 investors may have been skittish in part because there was uncertainty as to whether the bank might sell the hedge fund business in response to the Dodd-Frank financial regulation law. It was only in September that JP Morgan chief executive Jamie Dimon said the plan was to keep Highbridge, dispelling the uncertainty on this issue.


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