Report: BlueMountain Sought To Hire JPMorgan Bankers As It Harpooned 'Whale'

Mar 1 2013 | 10:09am ET

BlueMountain Capital Management, which made hundreds of millions of dollars betting against the credit default swap index trades that cost JPMorgan Chase billions, allegedly earned the ire of some within the bank for its efforts to poach some members of JPMorgan's staff.

New York-based BlueMountain, which was later hired by JPMorgan to help it unwind the disastrous trades, sought to recruit several members of the bank's chief investment office in the months before JPMorgan revealed the loss, Reuters reports. The unit was the same one that housed Bruno Iksil, known as the "London whale," the trader who built the huge derivatives positions.

None of BlueMountain's targets joined the hedge fund and there is no indication that it did anything wrong, according to Reuters. But some within JPMorgan reportedly complained about BlueMountain's recruitment efforts as it and other hedge funds built positions countering the bank as JPMorgan's losses mounted.

Some traders in the chief investment office believed their unit was the victim of a coordinated attack by hedge funds.

BlueMountain, which has $12.5 billion in assets under management, is led by JPMorgan veteran Andrew Feldstein, and hired the bank's former head of corporate and investment banking, James Staley, in January.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.