J.P. Morgan Alternative Asset Management (JPMAAM) offers institutional clients a variety of absolute return-oriented investments using hedge funds.
Investors can select from multi-manager vehicles that include single-strategy and multi-strategy investment options in either commingled or customised portfolios. In all cases, portfolios are subject to ongoing monitoring by J.P. Morgan Alternative Asset Management's investment and multi-tiered risk management teams.
Hedge fund manager strategies
In general, we divide hedge fund managers into the following six main strategies, which are further divided into sub-strategies.
By properly blending these strategies and sub-strategies together, J.P. Morgan Alternative Asset Management's portfolio construction process aims to achieve an overall return/risk profile specific to a particular fund of funds objective, as well as proper diversification and balance in the overall portfolio.
Long/Short Equities - Long or short positions in equity securities deemed to be under or overvalued. Manager does not attempt to neutralize the amount of long and short positions.
Relative Value - Involves the simultaneous purchase and sale of similar securities to exploit pricing differentials. Manager attempts to neutralise long and short positions to minimise the impact of general market movements.
Distressed Securities - Investments in debt and equity securities of companies in reorganisation or bankruptcy.
Opportunistic/Global Macro - Investments in a wide variety of strategies/instruments, usually assuming an aggressive posture. Manager seeks to capitalize on broad macro economic/market movements or trends.
Merger Arbitrage/Event Driven - Investments in securities of firms involved in mergers or other special situations which alter a company's financial structure or operating strategy.
Short Selling - Strategy seeks to profit from declining security prices by assuming short positions in companies with unfavorable prospects. Strategy performs best in declining markets.
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For our beginner, intermediate and advanced insight into Hedge Funds, please click on the documents below:
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