Summary: J.P. Morgan's (NYSE:JPM) hedge fund assets under management have surged in the past year to $28.8 billion as of the end of July, placing it second in size behind Goldman Sachs (NYSE:GS). Last year it ranked 12th with assets of about $16 billion. Jes Staley, head of JPM's asset-and wealth-management division comments, "We were very sensitive to what the ultra-high-end individual was doing. We just saw so many of our clients going off to invest in hedge funds, and we wanted to go where our clients are going." Overall, JPM's funds have performed well this year while rivals Goldman and Citigroup (NYSE:C) are struggling with some of their funds. Although hedge fund assets total only about 3% of JPM's asset-management arm's $898 billion in assets as of June 30th, they bring in higher fees and margins than traditional asset-management, and are among the firm's largest alternative-investment offerings.
Related links: Full WSJ article • Amaranth: Tip of the Iceberg • Brokerage Stocks - Have They Topped? • So Far, the Dow Dog are Stars
Potentially impacted stocks and ETFs: The only other bank stock competing in hedge fund asset-management ranked in the top-10 is Barclays (NYSE:BCS).
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