JP Morgan buys majority stakes in Brazil’s Gavea

SAO PAULO/NEW YORK: JP Morgan Chase & Co said on Wednesday it acquired a majority stake in Brazilian hedge fund and private equity firm Gavea Investimentos, joining a wave of foreign financial firms betting on one of the world’s fastest-growing economies.

The New York-based bank, which made the purchase through its hedge fund Highbridge Capital Management, did not disclose details of the transaction. But Brazilian media said it would pay about $270 million for a 55 percent stake and an option to buy the remaining 45 percent in the next five years.

Gavea is a mid-sized fund firm that is co-owned by former Brazilian central bank chief Arminio Fraga, one of the best-known names in the country’s bustling financial world.

JPMorgan posts surging earnings

 WASHINGTON: JPMorgan Chase on Wednesday reported a hefty jump in earnings to 3.3 billion dollars in the first quarter, as the massive US bank appeared to continue its journey back to health.

The New York-based financial giant said the earnings compared with 2.1 billion dollars in the first quarter of 2009, a 54 per cent increase.