One of the world's largest hedge fund firms inside one of the world's largest banks is stalling, underscoring the challenges faced by other increasingly large money managers.
JPMorgan Chase's asset management unit's majority purchase of Highbridge Capital Management in 2004 long seemed like a win. The hedge fund firm assets grew from about $7 billion at the time of the sale to $37 billion in 2007.
But Highbridge's fast growth has slowed in recent years. Assets have declined since their pre-financial crisis peak to $24.5 billion as of Jan. 1; performance by its flagship hedge funds have been middling; and the firm has undergone notable personnel changes, not all of them planned.
JPMorgan is the second largest hedge fund manager in the Americas by assets, controlling $59 billion as of Jan. 1, according to a ranking by industry data and news provider Absolute Return. Of that, $12 billion is from Highbridge; $47 billion is in other bank-controlled hedge fund vehicles.