J.P. Morgan Asset Management launched two hedged equity funds: JPMorgan Hedged Equity 2 and JPMorgan Hedged Equity 3. Both funds will seek S&P 500 equity exposure while hedging overall market risk relative to traditional long-only equity strategies.
Each fund’s hedged strategy is implemented on staggered start dates, resetting hedged periods every three months to seek a consistent investment experience. At the beginning of each hedged period, a disciplined options overlay strategy is implemented based on market conditions, and over the long term, the intent is to reduce the funds’ risk by offsetting losses resulting from market volatility.
The funds will leverage an equity management team comprising more than 62 years of combined experience and headed by 33-year industry veteran Hamilton Reiner as the lead portfolio manager, based in New York.
“Regardless of the environment, equity investors demand a flexible experience when it comes to managing risk,” Reiner, who serves as portfolio manager and head of U.S. equity derivatives at J.P. Morgan Asset Management, said. “We expect strong demand for both JHQDX and JHQTX as investors look for managed solutions that are designed for capital appreciation, and employing the hedged experience allows clients to stay invested no matter the state of the market.”