Money managers under the microscope
Highbridge loves JPMorgan, but doesn’t want to move in
Glenn Dubin, co-founder of $27 billion hedge fund Highbridge Capital Management, says he feels lucky that when he chose to partner with a bank it happened to be JPMorgan Chase & Co. The bank emerged from the crisis as the strongest bank in the world, while hedge funds that had been connected to Lehman Brothers were left struggling.
Speaking at the Bloomberg Hedge Funds 2010 conference in New York on Thursday, Dubin said that he thinks JPMorgan is a great partner, but that Highbridge still values its independence and would never move from its offices on West 57th Street into the bank’s glitzy Park Avenue headquarters.
“The senior most people at JPMorgan have been very protective and very supportive of the culture at Highbridge. Independence is a big part of that… and also having our own office is a big part of that. JPMorgan, like many other financial institutions, has a lot of empty office space around, and it might have been more cost-efficient and convenient for them to suggest we move our organization to one of their buildings but that was never a thought… Our investors want to come and see us at Highbridge, they don’t want to come and visit us at JPMorgan ,” Dubin said
Dubin said that in actuality Highbridge had a “long courtship” with JPMorgan, and the partnership with the bank has allowed the fund to grow and build new businesses like its $6 billion private equity and private credit funds business. JPMorgan originally bought a 55 percent stake in Highbridge in 2004, and gradually raised its stake over the next few years, completing its takeover of the fund in 2009.