Investing in hedge funds, private equity, private credit and real estate funds has long been a part of sophisticated client portfolios and for good reason. They can be an attractive long-term complement to a traditional public stock/bond allocation.
Hedge funds and private investments
With so many hedge funds and private alternative investments to choose from, how do you identify the right fit for your portfolio? At J.P. Morgan Private Bank, we’ve curated a group of top alternative managers to help you make choices that work for you—including many opportunities that you won’t find anywhere else.
Our broad platform of hedge funds and private investments is carefully and thoughtfully selected in seeking to fulfill your various investment needs.
An alternative to the typical alternatives platform
Alternative investments have long been a part of our clients’ portfolios. There are dozens of strategies, styles and ways to access them. But separating the exceptional from the average can be challenging.
J.P. Morgan has been a pioneer and innovator in investing in alternatives. We use insights and perspective gained from this experience to create a platform—with a number of exclusive strategies—that provides our clients a way to invest in alternatives confidently and flexibly.
Guiding choice with an experienced hand
To select the investments on our alternatives platform, we start with three fundamental questions. What kind of strategies do our clients need? Which approaches do we believe will outperform? What new opportunities does the market offer?
From there, a dedicated team works to identify those hedge fund and private investments managers that we believe will excel.
Given the complexity of hedge fund investing, it’s important for our clients that we deeply understand how each manager on our platform chooses and manages investments, operates its business and manages risk.
We look for a track record of sustained success. A solid management team. A repeatable process. A proven ability to source deals. A strong alignment with our clients’ long-term interests.
Each year, we work with only 10 to 15 private investment managers and 40 to 50 hedge funds—a fraction of what you’ll find on less selective platforms.
We’ve worked with many of these managers for decades. And when we don’t see what our clients need in the marketplace, we’ve often partnered with managers to create custom strategies.
Always with your total portfolio in mind
Our alternatives teams don’t act in isolation. Our Global Markets Council brings together specialists from equities, fixed income and currencies, commodities and rates in every region, and across our managed and brokerage platforms, to share ideas and opportunities to deliver our best, holistic thinking to you and your portfolio.
Our highly curated platform is distinctive, offering a number of exclusive investment opportunities, drawing upon the knowledge and experience of investment and research professionals from across the firm.
Investments in alternative investment strategies is speculative, often involves a greater degree of risk than traditional investments including limited liquidity and limited transparency, among other factors and should only be considered by sophisticated investors with the financial capability to accept the loss of all or part of the assets devoted to such strategies.
Hedge funds (or funds of hedge funds) often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; are not required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. Further, any number of conflicts of interest may exist in the context of the management and/or operation of any hedge fund. While investments in private equity funds provide potential for attractive returns, access to opportunities not available in the public markets and diversification, they also present significant risks including illiquidity, long-term time horizons, loss of capital and significant execution and operating risks that are not typically present in public equity markets. Private equity funds typically have a 10-15 year term and will begin to monetize investments after holding them for 4-5 years.
Private investments are subject to special risks. Individuals must meet specific suitability standards before investing. This information does not constitute an offer to sell or a solicitation of an offer to buy . As a reminder, hedge funds (or funds of hedge funds), private equity funds, real estate funds often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. These investments can be highly illiquid, and are not required to provide periodic pricing or valuation information to investors, and may involve complex tax structures and delays in distributing important tax information. These investments are not subject to the same regulatory requirements as mutual funds; and often charge high fees. Further, any number of conflicts of interest may exist in the context of the management and/or operation of any such fund. For complete information, please refer to the applicable offering memorandum. Securities are made available through J.P. Morgan Securities LLC, Member FINRA, and SIPC, and its broker-dealer affiliates.
Hedge funds and private investments
Morgan Private Ventures
Morgan Private Ventures offers a small group of qualified investors entree into exclusive, high quality private investments.