Seeking out hedge fund alpha is goal of JP Morgan’s FoHF unit

JP Morgan Alternative Asset Management’s conservative reputation masks a passion for unearthing untapped sources of hedge fund alpha. It readily embraces niches ignored by most hedge fund investors.

Paul Zummo (pictured), co-head and chief investment officer of JP Morgan Alternative Asset Management (JPMAAM), will always be a little skittish about hedge funds. He readily admits to being deeply sceptical of managers that promise attractive returns with little or no risk and encourages analysts at JPMAAM to take a “glass half-empty” approach to evaluating hedge funds.

“We are a very risk-focused group,” he says. “We always start by looking at everything that can go wrong with a manager and