Struggling JPM Private Equity pulls gearing back from 'nosebleed' levels

JPM Private Equity has reduced its gearing to 38%, having run it as high as 60% at the start of the year, cutting it back from "nosebleed" levels.

The £159m trust of funds, which has lost 20% over the last three years, has reactivated its investment program with $35m invested in January and February in a bid to turn around performance. While the trust has done well to reduce its gearing from "nosebleed" levels, high fees and a complex structure still need to be addressed, according to Canaccord Genuity analyst Alan Brierley. "We believe strategic management has been poor while the quality of the portfolio continues to beg more questions than answers," he said. "Since launch, the NAV total return has lagged peers by an annualised...