JPMorgan Chase has launched the prime custody solutions group, a prime brokerage service aimed at both mutual funds and hedge funds. Mutual funds will have services for short selling and financing, and hedge funds will get custodial services and insulation for long-only positions.
JPMorgan said it created the group because mutual funds and hedge funds are increasingly adopting each other’s strategies.
"Challenging market conditions have underscored the importance of partnering with a prime brokerage that can safeguard assets in a separate depository,” said Devon George-Eghdami, managing director and head of the new unit. “Building on our industry-leading prime brokerage and custody businesses, we are expanding our product offering and delivering those shared benefits to clients in a more efficient manner.”
“They’re the best name in the business right now for safety,” Brad Alford, head of Alpha Capital Management, told Bloomberg. “There’s a lot behind that name.”