JPMorgan Takes Over Highbridge, Founder To Leave

Published: 11-Jun-2009

The banking major’s association with HCM has been one of the most successful in the hedge fund industry, as the latter’s assets under management swelled from $7 billion to $21 billion in just over five years.

JPMorgan Chase (JPM) has completed the takeover of the hedge fund giant, Highbridge Capital Management (HCM). JPM, which purchased 55% controlling stake in HCM for $1.3 billion five years back, has been building up its ownership since then. With this latest move, its stake increases to 77.5%.

Henry Swieca, Founder of HCM, plans to leave the firm after a transition period ending late this year and then seek new opportunities in the finance industry, as JPM moves to acquire the rest of the business, reported Reuters. However, Glenn Dubin, Co-founder of Highbridge will continue as CEO of the firm.

Over the past five years, the firm has built up a traditional asset management business, launched a business of making principal investments and emerged as one of the world’s largest hedge fund managers.

Mr. Swieca said: “When Glenn and I founded Highbridge 17 years ago, we wanted to build an alternative-investment-management business that would endure long after us. I am proud to say that we've succeeded beyond our dreams.”

Mr. Dubin said: “In this next era, I look forward to leading Highbridge in an environment that has its clear challenges but offers unprecedented opportunities.”

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