J.P. Morgan Asset Management (JPM) is broadening its team that offers hedge fund investments in a bet that volatility will help spur more allocations to the industry.
The money manager hired Lynnette Ferguson to lead hedge fund solutions for its investment specialist team in the Americas and promoted London-based Karim Leguel to be international head of the team, according to a statement Monday. Both will report to Jamie Kramer, head of J.P. Morgan's alternative solutions group.
J.P. Morgan is expanding a team to help investors access strategies that focus on private credit, quantitative methods, sustainability and long/short investing. The tweaks come as investors increase their allocations to hedge funds and pour more money into the market for private credit in search of higher yields.
J.P. Morgan advises clients on more than $17 billion in hedge fund assets, part of an alternatives group with more than $130 billion under management. It's among banks seeking to help clients such as wealthy individuals, pension funds and retail investors diversify their portfolios from traditional stocks and bonds.
"In the face of the long-in-the-tooth economic expansion, the threats of a global trade war and the return of equity volatility, investors are significantly increasing their target allocations to hedge funds," Ms. Kramer said in the statement.
The manager also hired Lyn Ngooi from APS Asset Management to lead the team in the Asia-Pacific region.