J.P. Morgan Retirement plans to withdraw approximately $2.3 billion that it has invested in funds. ”J.P. Morgan units including Highbridge Capital manage $26.5 billion of regulatory assets, including leverage,” Hedge Fund Alert’s Manager Database shows.
“Morgan wants to ‘immunize’ its pension plan by pulling back from hedge funds and traditional equity investments.” The website reported, “If you can use fixed income to offset your liability stream, then there is no need for directional strategies like equities, or [to be] levered like hedge funds.”
Citigroup did the same thing a few years back, scaling back a hedge fund portfolio that amounted to 10% of its overall pension assets. At the time, Citi’s retirement plan also was overfunded.
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