BlueMountain’s U.K. Unit Says Profit Rose Fivefold in 2012Jesse Westbrook
BlueMountain Capital Management LLC’s U.K. unit said profit rose more than fivefold last year, according to a filing with the U.K.’s Companies House.
Earnings increased to 21.7 million pounds ($35 million) from 4.2 million pounds in 2011, according to today’s filing. New York-based BlueMountain, which earns fees for managing client assets and for investment gains in its hedge funds, said revenue almost tripled to 36.8 million pounds.
BlueMountain, which has $15.7 billion under management and was founded by Andrew Feldstein and Stephen Siderow, primarily invests in credit and equity derivatives. It gained attention last year for helping JPMorgan Chase & Co. unwind trades that cost the New York-based bank more than $6.2 billion after the hedge-fund firm took positions against the lender.
JPMorgan’s derivatives holdings were built by a U.K. trader who came to be known as the London Whale, because of the large size of the positions. Feldstein, a former JPMorgan executive, started BlueMountain in 2003.
The average number of employees who worked for BlueMountain’s London unit in 2012 was 25, up from 19 a year earlier, the filing shows. Employees were paid 11.8 million pounds, or 472,000 pounds a person on average, compared with 6.6 million pounds in 2011, the filing shows.