JPMorgan Identifies Hedge Fund Co-Investment Trends, Tactics
Mark Melin
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In the first quarter 2014 edition of Prime Brokerage Perspectives, J.P. Morgan identifies a growing trend among institutional investors and fund managers: the co-investment.
Rather than investing in a hedge fund manager’s main fund, co-investments enable an institution to invest alongside a hedge fund manager on a specific project that may be one of many investment ideas the fund may be utilizing. Although the report didn’t cite it, one popularized example on the outer edge of the investment may be Bill Ackman’s Pershing Square investing in Allergan, Inc. (NYSE:AGN) and partnering with Valeant Pharmaceuticals Intl Inc (NYSE:VRX) who is seeking to acquire the firm.
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.