JSM Financial: JPMorgan Chase & CO eyes stake in Brazil’s Gavea.

Feb. 25, 2010 - PRLog -- Brazilian newspaper Valor Economico has recently reported that American financial giant JPMorgan Chase is in negotiations to by an undisclosed stake in Brazils hedge fund firm Gavea, which was founded by former Brazilian central bank chief Arminio Fraga. JSM Financial believes the newspaper adds that Highbridge Capital Management, a hedge fund company that manages alternative investments for JPM is handling the deal.

Arminio Fraga, who is also a member of JPM’s international board, formed Gavea after leaving Brazil’s central bank in 2003. Presently, Gave oversees over $8.5 billion in assets in a variety of activities including wealth management, hedge funds and private equity.

Valor Economica went on to say that the new agreement would see the present management of the Rio de Janeiro based Gavea remaining in their positions and acting with “greater autonomy”, JSM Financial understands.

Neither JPMorgan Chase & Co. nor Gavea were prepared to comment on the reports.

JPMorgan bought control of Highbridge Capital Management in 2004 and JSM Financial sources indicate that the firm manages assets of around $21 billion.

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