The fund is JHEQX.
Bloomberg published a longer, more detailed article today:
“JP Morgan Options Wale Worries Resurface as Stocks Extend Drop”. (unable to link)
From
Reuters:
“How A Massive Options Trade by a JP Morgan Fund Can Move Markets”https://www.yahoo.com/video/explainer-massive-options-trade-jp-100000001.html Excerpt: ”A nearly $16 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a gloomy quarter for stocks. Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
“The (fund) holds a basket of S&P 500 stocks along with options on the benchmark index and resets hedges once a quarter. The fund, which had about $15.59 billion in assets as of September 28, aims to let investors benefit from equity market gains while limiting their exposure to declines. … Assets ballooned in recent years, as investors sought protection from the sort of wild swings that rocked markets in the wake of the COVID-19 outbreak in March 2020.”
Comments
According to M* AUM=16 billion which is what the article said.
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"JP Morgan Fund Could Rattle Markets Friday"
FD: doesn't look to me that way. The article is from September 30, 2022 which is a year old.
Back to the article. It was written on Thur 10-27-2022. The next day had no rattle.
Is the article still relevant for tomorrow=Friday?
Not bad. You’re only off here by 11 months. Yes - a genius you are. I’m in awe.
https://finance.yahoo.com/news/jpmorgan-options-whale-worries-resurface-163447387.html
https://am.jpmorgan.com/content/dam/jpm-am-aem/americas/us/en/literature/brochure/BRO-HE.pdf
Makes me question whether to renew current subscription to Bloomberg when it expires. The current Bloomberg story bears an uncanny resemblance to a year-old Reuters story. Now, I wonder if it was even generated by a living human being or something an intelligent robo churned out.
Good question, yogi.
Quickly checking out a few well established moderate allocation (60/40) funds like VWELX, JABAX and FBALX, for example, shows that JHEQX has a better risk/reward profile.
JHEQX has not only a better performance record over the past 1, 3 and 5 years than VWELX and JABAX, but also a significantly lower standard deviation, 8.7 vs. 12.3, respectively.
While FBALX has a slightly better performance, its standard deviation is significantly higher at 13.8.
As a retired investor, I prefer to invest in funds with lower standard deviations if the total returns of similar funds are more or less the same, never mind if they are less.
Good luck,
Fred
https://pbs.twimg.com/media/F7ONvufbUAAtomZ?format=jpg&name=900x900