The 20 Hedge Fund Superstars Hidden Inside JPMorgan

mary erdoesMary Erdoes

Photo: JPM

When you think about hedge fund stars, names like Soros, Paulson, and Cohen come to mind.But did you know that JPMorgan Asset Management owns the biggest hedge fund in the world?

The bank manages around $53.5 billion that is allocated in hedge fund assets.

Of course JPM’s investment in hedge funds might be challenged by the proposals in the Volcker Rule, which ban banks from proprietary trading or investing in hedge funds and private equity funds.

Conversely, JPMorgan believes that Volcker rule or not, it won’t be an issue because these funds don’t invest proprietary money.

But it’s impossible to know how this will play out.

But either way, we wanted to introduce you to…

The hedge fund stars who run the show >

Mary Erdoes arguably runs the whole gamut.

Erdoes is the CEO of JPM Asset Management.

Forbes named her the #100 most powerful woman in the world.

There's also Seth Bernstein, at JPM's Fleming Asset Management

Bernstein is the Head-Global Fixed Income & Currency at JP Morgan. He's also an MD of JPM Asset Management.

Bernstein's main hedge fund guy is Bill Eigen

Eigen runs a large fixed income hedge fund for Bernstein, the $5.4 billion JPMorgan Strategic Income Opportunities Fund.

Before that, Bill headed Highbridge Capital Management's Fixed Income Group.

Neill Nuttall is another one of JPM's big portfolio managers

Nuttall runs or co-runs three very large ($2 bn +) equity hedge fund strategies for JPMAM.

He's the head of JPM's Global Multi-Asset Group, meaning he is ultimately responsible for all of the funds managed by the team.

So is Antony Vallee, Nuttall's partner

Vallee runs large convertible bond fund, JPM Global Convertibles, with Nuttall. He's the VP and manager.

He joined JPM from the French hedge fund Systeia Capital Management, part of Credit Agricole.

The fourth big portfolio manager is Kaori Tsujino

Tsujino runs large Asian equity HF strategy.

David Frame is the head of alternatives in JPM's private bank

Frame runs alternatives business in the Private Bank.

Larry Unrein runs Private Equity and JPMAAM

Unrein heads JPM Alternative Asset Management, JPM's fund of funds business.

One of his two portfolio managers is Corey Case

Case is the COO and Co-Head of J.P. Morgan Alternative Asset Management.

He works with Paul Zummo, CIO of JPMAAM.

Together the three run JPM's fund of fund business.

JPMAM became the biggest hedge fund manager after it bought Highbridge in 2004

JPMAM, JPMorgan Asset Management, is a big business, but it only became the biggest hedge fund manager in the world because it owns Highbridge Capital Management.

In 2004, JPM bought a 55% stake in Highbridge for more than $1.3 billion. They acquired the rest in installments and completed purchase of the whole firm in 2009.

Highbridge is a hedge fund that was started in 1992 by childhood buddies Glenn Dubin and Henry Swieca

They grew up five blocks from each other in Washington Heights and were roomates at a NY state university, Stony Brook.

Together the two also started Dubin & Swieca, an asset management company specializing in alternative investment strategies, in 1984.

They named their fund, 'Highbridge,' after the acqueduct in Washington Heights.

(Read the profile of Highbridge in Absolute Return + Alpha)

Only Glenn is still there. Henry Swieca is now gone.

Dubin is the CEO and co-founder of Highbridge.

A few fun facts: he dated Bianca Jagger, is wed to a former Miss Sweden, shoots pheasant with NBC News's Tom Brokaw and sits on philanthropic boards with actress Gwyneth Paltrow and buyout king Henry Kravis, according to Bloomberg.

(Read the profile of Highbridge in Absolute Return + Alpha)

Jes Staley worked on the deal joining Highbridge with JPM

Staley and Dubin worked on the deal joining JPM and Highbridge. Soon after Henry Swieca decided to leave, Staley joined.

Update: Now Staley is the head of JPM's Investment Bank.

(Read the profile of Highbridge in Absolute Return + Alpha)

Todd Builione, the COO

Builione became the COO of Highbridge after working for Goldman Sachs.

Builione is a member of the investment committee and is responsible for all infrastructure activities of the firm.

(Read the profile of Highbridge in Absolute Return + Alpha)

Dubin and Builione run the ~400 man strong hedge fund entirely separately from JPM along with six portfolio managers:

Mark Vanacore, a partner in Highbridge, who heads convertible arbitrage

Vanacore has been with the company since 1992. Before that, he was a former portfolio manager for equity derivatives at Taylor and Co., the investment management division of the Bass organisation in Fort Worth, Texas.

(Read the profile of Highbridge in Absolute Return + Alpha)

Scott Kapnick, the chief executive officer of Highbridge Principal Strategies

Kapnick, who started at Goldman as the co-head of global investment banking, is also a managing partner at Highbridge and CEO of Highbridge Principal Strategies.

He started a mezzanine loan and levered loan fund (among other investment strategies at Highbridge). HPS now has almost $4 billion in credit and equity strategies.

Carl Huttenlocher, senior portfolio manager for Highbridge's Asia investment strategies

Huttenlocher has been with Highbridge since 2002. He came from Intelligent Markets, which he founded after working for the notorious hedge fund, Long Term Capital Management, that massively blew up in 1998.

He also traded European Convertible Bonds for Citadel. Now he's a managing director and senior portfolio manager at Highbridge.

Alec McAree, senior portfolio manager for the long/short equities group

McAree, who has been with Highbridge since 2003, is a Managing Director and Senior Portfolio Manager for the Long/Short Equities group.

McAree built his hedge fund career working for Soros Fund Management (as a Managing Director) and Citadel (where he was the Director of Research of the Long/Short Diversified Fund.)

Alan Sunier, one of the senior portfolio managers for Highbridge's statistical arbitrage group.

And Evan Dick, the other senior portfolio manager for Highbridge's statistical arbitrage group

There's also Clayton Rose on the executive committee

Rose was the head of JPMorgan's investment bank before he joined Highbridge's executive committee. He also teaches at Harvard Business School.

And Bob Goad, who is also on the executive committee

Goad worked in principal investments at Goldman Sachs before joining Moore Cap.

Despite running the biggest hedge fund operation in the world, all of them have stayed under the radar

None of them are on our list of the 28 richest billionaire hedge fund managers.

See who else is on the list of the biggest hedge fund managers in the world.

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