JPMorgan Asset Management is liquidating its credit hedge fund — Palm Lane Credit Opportunities — a source familiar with the matter told Institutional Investor Thursday.
This comes about a week after the firm said it was laying off roughly 100 employees from its asset management division. The layoffs amounted to roughly one to two percent of all asset management employees at the firm.
Palm Lane, led by Fahad Roumani, had been the subject of spin-out rumors earlier this year. However, JPMorgan has instead opted to shut the credit vehicle completely.
[II Deep Dive: JPMorgan Lays Off 100 From Asset Management Division]
But statistically, hedge fund liquidations have slowed since they hit their peak in 2016. That year, according to Hedge Fund Research, 1,057 fund liquidations took place. In 2017, 784 funds closed — a 25 percent drop year-over-year.
“Fund liquidations for 2017 were the lowest for a calendar year total since 775 funds liquidated in 2011,” according to Hedge Fund Research.
A spokesperson for JPMorgan declined to comment on Palm Lane.