Hedge Funds

JPMorgan axes group with some hedge fund stakes


JPMorgan has put the kibosh on an investment banking unit, called Principal Investment Management, that invested firm capital in such areas as private equity, real estate and hedge funds.

Despite some hysterical headlines stating that the bank was closing its hedge funds, the decision to cut the principal investment management unit should have no effect on the hedge funds directly under JPMorgan’s control, including JPMorgan Asset Management and Highbridge Capital Management, which managed total assets of $32.9 billion as of January 1.

It remains unclear whether the decision will cause immediate pain for hedge funds that had sold