Another Bear hedge fund on the rocks

A third Bear Stearns hedge fund is in trouble due to the subprime mortgage market, according to published reports.
AUG 01, 2007
By  Bloomberg
A third Bear Stearns Cos. Inc. hedge fund is in trouble due to the subprime mortgage market, according to published reports. The Bear Stearns Asset-Backed Securities Fund, valued at $850 million, has stopped investor redemptions and reported that it expected losses in July, the New York Times said. However, the bank doesn’t plan to liquidate this fund, saying that its assets—which are tied to Alt-A and prime mortgages—are worth more than market conditions allow, Reuters reported. Bear Stearns has already seen a pair of its hedge funds deflate this summer, wiped out by bets on the mortgage market. Investors in the High-Grade Structured Credit Strategies Enhanced Leverage Fund were told there was no value left, while there was “very little value” in the High-Grade Structured Credit Strategies Fund. The New York-based bank has reportedly hired a few outside law firms in anticipation of investor suits, the Times said.

Latest News

Ackerman promoted at Integrated Partners, Robertson Stephens strengthens board
Ackerman promoted at Integrated Partners, Robertson Stephens strengthens board

Some of this week's hires across the wealth and investment industry

Emergency savings dynamic shifts to positive for first time in three years
Emergency savings dynamic shifts to positive for first time in three years

More Americans have added to their savings than depleted them.

Muted week for stocks, bonds amid data, trade, conflicts
Muted week for stocks, bonds amid data, trade, conflicts

Some big headlines have made many investors cautious this week.

Dollar bets disrupted by Trump trade speculation
Dollar bets disrupted by Trump trade speculation

Traders see tariffs mostly as a bargaining tool.

Treasuries set for challenges as tariffs reality nears
Treasuries set for challenges as tariffs reality nears

Yields could rise to 4.80% for the 10-year benchmark, survey suggests.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.