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J.P. Morgan betting big on asset management

Like other large banks, J.P. Morgan is cutting headcount. The bank hopes to trim its staff by as much as 19,000 by the end of the next year. But that doesn’t mean the firm isn’t hiring in pockets. J.P. Morgan has quietly been adding to its thriving asset management team over the last year.

Mary Callahan Erdoes, chief executive of the bank’s asset management business, told Bloomberg that the unit has added nearly 1,400 new employees during the 12 months ending in June. The business added just 450 people in 2012, so most of the growth is very recent.  The group has grown by 8% over the last year, and for good reason. J.P. Morgan Asset Management has seen a 14% uptick in profit since the financial crisis. The larger bank has seen a nearly 40% dip during the same time frame.

With incoming regulations slowing activity in other areas, asset management has been a key growth sector for bulge bracket banks and smaller boutiques. Roughly 46% of asset managers have increased their headcount over the last year, with 48% expecting to do even more hiring in the next 12 months, according to a recent KPMG study. Miraculously, asset management headcount has broken pre-crisis levels in London. The hiring numbers are nearly as impressive in the U.S.

Pay is also on the rise. On a pay-per-head basis, most large publicly-listed asset managers increased pay during 2012, according to our analysis. Top performers are seeing multiple offers and impressive packages. More middling performers haven’t seen much of an increase in pay, however.

Dealing With Buyer’s Remorse (eFinancialCareers)

You’re weeks into your new job and you can’t get the knot out of your stomach. Don’t worry: you’re not alone. Buyer’s remorse is an all-too-real phenomenon that affects more employees than you’d probably imagine. Here’s how to deal with it.

Leaving a Loser (WSJ)

J.P. Morgan is exiting the student loan business effective Oct. 12. The U.S. bank generated $6 billion from the unit in 2008 but currently derives less than $200 million in revenue.

Where to Work If You Don’t Want to Work (eFinancialCareers)

Banking is hard work. If you don’t want to work hard, don’t work in banking. Still, some roles aren’t as grueling as others.

Healthcare Warming Up (Bloomberg)

Evercore Partners has hired former Goldman Sachs exec Matthew McAskin as a senior managing director within its healthcare advisory group. Healthcare M&A is getting hot.

Expensive Turf (Newsday)

A 1-foot-wide piece of property in the Hamptons went up for sale for $10. Then two Wall Street traders started bidding. After a lengthy back-and-forth, Centerbridge Partners’ Marc Helie paid $120,000 for the strip of land.

Poaching (Bloomberg)

Pavan Wadhwa, former head of U.S. dollar interest rate strategy at J.P. Morgan, has been hired by BlackRock to run its global interest rate analysis team. BlackRock just unseated J.P. Morgan as the best bank to work for, according to a recent survey.

Boutique Firm Launched (FIN Alternatives)

Former Fauchier Partners executive Dan Higgins and two former executives at Jacob Rothschild's RIT Partners have launched a new boutique alternative investments firm. No word yet on any hiring plans.

Nice Paycheck (Reuters)

Morgan Stanley will pay former energy trader Amit Gupta $8 million in deferred compensation after regulators ruled that he was fired without cause. He was let go after declining to speak with authorities during an investigation that never prompted charges.

Buzz Around the Office

Barclays Acting Bullish (City AM)

Barclays sent out a rather drab release this week that was spiced up by a hilarious mix-up. Rather than hyperlinking to, the firm included a URL that directs readers to a website that sells bull semen.

List of the Day: Recruiter Love

Developing a good relationship with your recruiter can go a long way in helping you find work. Here are some tips for getting them on your side.

  1. Understand that they work for the hiring firm, not you.
  2. Share feedback with them.
  3. Don’t harass them incessantly.

(Source: Glassdoor)

AUTHORBeecher Tuttle US Editor

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