Asset Management

Pursuing a variety of strategies, Jefferies' experienced fund managers seek to both manage risk effectively and consistently deliver favorable returns in all market conditions. Revenues from asset management increased 34 percent in 2006.


A balanced & diversified platform

Asset Management
Jefferies' asset management efforts continues to add valuable portfolio managers and expand its suite of strategies. This business represents the foundation of a third leg to the Jefferies platform and is well-positioned to grow significantly in the coming years. Revenues from asset management comprised 8 percent of total net revenues in 2006, up from 2 percent in 2000. The group brings an important level of balance to our overall platform and unique opportunities for a select group of sophisticated investors.

During the year, Jefferies Asset Management, LLC (JAM) registered with the SEC as an investment adviser, an important step in the ongoing efforts to establish a solid and scalable infrastructure.

The majority of our funds experienced strong performance over the year. Assets under management for our convertible bond funds experienced an increase of 50 percent to $2.5 billion. Collectively, assets under management now total $4.4 billion.

Since 2000, revenues from our asset management activities have grown almost eightfold and involve various strategies including fixed income securities, equities, convertible securities, distressed and merger arbitrage. We continue to align our interests with those of our clients, and had an average investment in managed funds of $305 million during the year. We have remained true to our strategy and our goal continues to include expanding into new asset classes and strategies, recruiting talented managers and achieving favorable returns in all market conditions.