25 July 2013

JP Morgan Retirement Exits Hedge Funds and 'Pulls Back' From Equities

Let's see, JPM's customers have withdrawn most of their gold from the COMEX vaults almost overnight, along with Brinks customers.

And now JPM's Retirement Fund is dropping all exposure to hedge funds and pulling back from equities because they don't need the money.  Apparently return on investment is an outmoded concept.  Especially when you may be in a position to see some formidable vagaries of the market heading in your direction.

Nothing to see here, move along.  All is well.

Curiouser and curiouser. 

Highbridge Owner JPMorgan Chase Cuts Hedge Funds From Pension
Jul 25 2013
9:57am ET

JPMorgan Chase is one of the biggest hedge fund managers in the world, managing billions for pension funds. But its own pension isn't sure the asset class is worth the risk anymore.

J.P. Morgan Retirement plans to liquidate its entire $2.3 billion hedge fund portfolio, which accounts for about 18% of its $13 billion in assets. The bank's pension is able to make the risk-cutting move.  It will also pull back from equities ­because it is that rarest of things: an overfunded pension system, with enough money to cover 117% of its obligations.  (Yes that's right therefore they don't need any returns - Jesse)

Eliminating hedge funds will "immunize" the pension from the vagaries of the market, a source told Hedge Fund Alert...

Read the original at FINalternatives here.