Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  JPMorgan Chase & Co.    JPM

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

JPMorgan Chase & Co. : Talpion's Swieca Prepares for Protege's Fund Opening

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/04/2013 | 09:05pm CET
   By Liz Moyer 
 

Henry Swieca is preparing to return to the hedge fund world as a startup investor in a new fund managed by one of his proteges at Talpion Fund Management LP.

Clearline Capital LLC, managed by Marc Majzner, was formed in January 2012 with $50 million of Talpion's money and another $20 million from Mr. Swieca and his family. The "catalyst value" fund, which invests in cheap stocks of companies that are undergoing some kind of change or event, is set to open to outside investors on March 1.

Mr. Swieca is perhaps best known for co-founding Highbridge Capital Management LLC. J.P. Morgan Chase & Co. (JPM) bought a majority stake in $29 billion-asset Highbridge in 2004 and the remainder in 2009, and Mr. Swieca went on to open Talpion.

Regulatory changes in the industry convinced Mr. Swieca to close Talpion to outside investors in late 2011 and return investor money to focus on managing his own money. Clearline would be Mr. Swieca's first try at providing start up capital to a new outside fund.

Mr. Majzner, 34 years old, has managed money for Mr. Swieca for two years. They both declined to comment on the performance of the Clearline portfolio.

Clearline and its seven-person staff will continue to be based in Talpion's offices on the 34th floor of a high rise in Midtown Manhattan, walled-off from the main trading floor. Talpion provides the infrastructure and support as part of a shared-services agreement with Clearline and also shares in the profits.

In a recent interview, Mr. Swieca said the arrangement will ease the burden of raising outside capital for Mr. Majzner in a difficult environment.

Last year, investors sank $34 billion into hedge funds, but that is the lowest level of annual inflows since 2000, according to data from Hedge Fund Research Inc. in Chicago. Inflows were half that of 2011 and less than the $55 billion investors put into hedge funds in 2010. There were outflows of money from funds in 2008 and 2009.

Smaller hedge funds typical of the size of a startup had $1.8 billion of investor inflows last year, HFR says, but that is dwarfed by the $56 billion raised by funds with $5 billion or more of assets. Other categories in the middle of those two extremes saw investor outflows last year.

"It's been a challenging environment for small- to midsize funds, and that's a function of the investor risk aversion that has been so pronounced over the last two years," said Kenneth Heinz, president of HFR.

Clearline's potential clients include those investors who got their money handed back to them by Mr. Swieca in late 2011.

"With seed capital and infrastructure he was able to solve many of the issues emerging managers face in a difficult fundraising environment," Mr. Swieca said of Mr. Majzner.

Mr. Swieca and Highbridge co-founder Glenn Dubin worked with several star managers at Highbridge, including Bart Baum and Dan Stone, who left and founded $2 billion Ionic Capital Management in 2006. Carl Huttenlocher, Highbridge's former head of Asia, founded Myriad Asset Management. Marc Vanacore succeded Mr. Swieca as chief investment officer of Highbridge.

Mr. Majzner was an investment analyst at North Run Capital, a Boston-based hedge fund, before joining Talpion. Before that he worked at private equity firm Spectrum Equity Investors after starting his career as an analyst at Credit Suisse.

Regulatory changes and the financial crisis put a damper on hedge fund startups in recent years. In 2009, the same year Mr. Swieca left Highbridge, 1,023 funds closed and 784 launched, according to HFR. Through September last year, 635 had closed and 824 had opened.

New financial regulations requiring funds to register with the Securities and Exchange Commmission if they want to manage outside money, plus the difficulty in matching returns from prior years, prompted departures from the industry by several well-known managers, including George Soros and Stanley Druckenmiller.

Mr. Swieca said in the interview that he decided to do the same in 2011 after talking about it over a sushi lunch with Mr. Druckenmiller.

Write to Liz Moyer at liz.moyer@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on JPMORGAN CHASE & CO.
12/03 JPMORGAN CHASE : Trump Unveils Business Advisory Council
12/02 Trump creates business advisory council stacked with CEOs
12/01 Wells Fargo amends bylaws to separate chairman and CEO roles
12/01DJDespite Fiduciary Uncertainty, Wells Fargo Details Compliance Plans
12/01 ESSENT GROUP LTD. : CEO to Present at the J.P. Morgan 2016 FinTech & Specialty F..
12/01 JPMORGAN CHASE : BBR Partners Opens New Chicago Office
12/01 JPMORGAN CHASE : BBR Partners Opens New Chicago Office
12/01DJOPEC Deal Keeps Global Oil Prices Buoyant
11/30 JPMORGAN CHASE : On Its 5th Birthday, the Institute for Veterans and Military Fa..
11/30 Texas Capital Bancshares, Inc. Prices Common Stock Offering
More news
Sector news : Banks - NEC
12/02DJMorgan Stanley Toughens Pay Hurdles for Brokers
12/02 BARCLAYS : Deutsche Bank to pay $60 million to settle U.S. gold price-fixing cas..
12/02DJDeutsche Bank to Cut Off Around 3,400 Clients
12/02DJCIT : Mnuchin, Tapped for Treasury Secretary, Leaves CIT and Sears Boards
12/02DJSingapore to Ban Former Goldman Banker in Connection With 1MDB Scandal -- 2nd..
More sector news : Banks - NEC
News from SeekingAlpha
12/02 Sell Bank Stocks Today If...
12/02 With Dividends, AT&T Deal Offers 12% IRR
12/02 All-star list of business leaders named to Trump advisory forum
12/01 With 2016 Nearing A Close, Our Dividend Growth Portfolio Is Up Almost 10%
12/01 The Big Gamble
Advertisement
Financials ($)
Sales 2016 97 580 M
EBIT 2016 36 156 M
Net income 2016 21 334 M
Debt 2016 -
Yield 2016 2,29%
P/E ratio 2016 13,93
P/E ratio 2017 12,96
Capi. / Sales 2016 2,99x
Capi. / Sales 2017 2,90x
Capitalization 291 986 M
More Financials
Chart JPMORGAN CHASE & CO.
Duration : Period :
JPMorgan Chase & Co. Technical Analysis Chart | JPM | US46625H1005 | 4-Traders
Full-screen chart
Technical analysis trends JPMORGAN CHASE & CO.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 32
Average target price 78,1 $
Spread / Average Target -4,3%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
James Dimon Chairman & Chief Executive Officer
Matthew E. Zames Chief Operating Officer
Marianne Lake Chief Financial Officer & Executive Vice President
Dana S. Deasy Chief Information Officer
Lee R. Raymond Lead Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
JPMORGAN CHASE & CO.23.58%291 986
WELLS FARGO & CO-1.43%269 095
INDUSTRIAL AND COML BA..-1.31%230 206
BANK OF AMERICA CORP25.49%214 530
CHINA CONSTRUCTION BAN..-3.29%187 660
CITIGROUP INC8.97%159 642
More Results