Arden Asset Management, a fund of hedge funds manager, has agreed to manage a USD1.1bn proprietary hedge fund of funds portfolio for J.P.
Arden Asset Management, a fund of hedge funds manager, has agreed to manage a USD1.1bn proprietary hedge fund of funds portfolio for J.P. Morgan’s investment banking division, effective 1 July 2009.
J.P. Morgan’s investment bank has agreed to seed several new Arden funds and invest in one of Arden’s current flagship funds with these assets.
As part of the agreement, a team led by Shakil Riaz, chief investment officer of J.P. Morgan’s proprietary hedge fund of funds programme since inception in 1995, will join Arden. Riaz will become a member of the Arden investment committee and continue his investment leadership role for new funds seeded by the J.P. Morgan assets.
The existing Arden funds and customized accounts will continue to be managed by Arden senior investment professionals and investment committee members.
‘Arden’s high quality institutional infrastructure and well-established investment processes were important in our decision to select the firm to manage these assets,’ says Robert Case, head of principal investment management for J.P. Morgan’s investment bank. ‘Partnering with Arden, which has a proven track record of managing absolute return programs through many market cycles, enables us to continue participation in this attractive asset class, while better managing our overall capital commitments.’
Averell Mortimer, Arden president and chief executive officer, says: ‘We are pleased to partner with J.P. Morgan on this unique venture, which we believe will create significant value for both Arden investors and J.P. Morgan in the years to come. Importantly, this initiative further strengthens our organization and brings additional specialization and expertise to Arden’s global investment program. We warmly welcome Shakil and his colleagues to Arden and believe investors will benefit from their market experience and long-term investment record as we develop new strategies to meet the expanding needs of our sophisticated institutional clientele.’
