Stewart, who took over the unit in February 2011, will start the Whard Stewart hedge fund in the second quarter, and members of the emerging-markets trading team that he previously led are expected to join him, the newspaper reported, citing unidentified people familiar with his plans.
Banks are winding down some proprietary-trading operations ahead of U.S. rules that restrict deposit-taking institutions from making bets with their own capital. The so-called Volcker rule, a provision of the Dodd-Frank Act that limits risk-taking, would prohibit lenders from investing more than 3 percent of Tier 1 capital in hedge funds or private-equity funds.
JPMorgan said in 2010 that it planned to move proprietary traders in the emerging-markets, structured-credit and equity units to the asset-management division, with Stewart overseeing the shift. Deepak Gulati, the global head of equity proprietary trading who’s going to move into the asset-management unit with his traders this year, also is considering whether to start a fund, the FT said, citing people with knowledge of his thinking.
Jennifer Zuccarelli, a JPMorgan spokeswoman, didn’t return an e-mailed request for comment and an attempt to reach her by telephone was unsuccessful.
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