Investors seize defunct Bear hedge funds

Investors have seized two Bear Sterns hedge funds, in hopes that they will gain a chance to meet the company in court, according to the Financial Times.
FEB 29, 2008
In a bid for compensation, investors have seized two Bear Sterns hedge funds, in hopes that they will gain a chance to meet the company in court, according to the Financial Times. A Cayman Islands court replaced Bear Sterns-appointed liquidators with those appointed by investors, who hope to leverage the funds into a court bid attempting to recoup some of the losses incurred by Bear last summer. This dispute is rooted in the beginnings of the subprime debacle, when Bear Sterns lost $1.6 billion when it close two of its hedge funds: The Bear Stearns Asset-Backed Securities Fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund in what would be the first of many meltdowns attributed to the credit crisis (InvesmtentNews, Aug. 1, 2007).

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