Arden Asset Management, an independent fund of hedge funds manager, and JPMorgan have signed an agreement under which Arden will manage a $1.1 billion proprietary hedge fund of funds portfolio for JPMorgan’s investment banking division, effective from July 1, 2009.
As part of the agreement, a team led by Shakil Riaz, CIO of JPMorgan, will join Arden. He will become a member of the Arden Investment Committee and continue his investment leadership role for new funds seeded by the JPMorgan assets. The existing Arden funds and customized accounts will continue to be managed by Arden senior investment professionals and investment committee members.
Robert Case, Head of Principal Investment Management at JPMorgan’s investment bank, said: “Arden’s high quality institutional infrastructure and well-established investment processes were important in our decision to select the firm to manage these assets. 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, President and CEO of Arden, said, “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.”
