Hedge Funds Performance

JPMorgan reaps prime brokerage windfall


JPMorgan is the latest prime brokerage to reveal its success at picking up huge chunks of business now that the bank is among the few remaining sources of financing. Over the past couple of months, hedge fund assets in JPMorgan’s prime brokerage unit have risen roughly 25%, according to the bank.

Following the rescue of Bear Stearns by JPMorgan in March and the failure of Lehman Brothers, hedge funds have urgently sought to add counterparty relationships to ensure stable and diverse sources of financing.

In this environment, Goldman Sachs and Morgan Stanley, formerly the two largest prime brokers,