Friday, 31 October 2014
Last updated 2 hours ago
Jun 14 2007 | 12:42pm ET
The crisis in the subprime mortgage market has claimed a second hedge fund victim, as Bear Stearns is liquidating its 10-month-old High-Grade Structured Credit Strategies Enhanced Leverage Fund. Bear sought bids—due at 10 a.m. this morning, The Wall Street Journal reports—for some $3.8 billion in mortgage-backed securities after it was forced to halt redemptions in the fund, which is down about 20% this year. Investors were seeking to pull almost half of their $600 million by June 30.
Bear is seeking to sell the fund’s highest-rated bonds in the current sale. In September, it unloaded its highest-risk collateralized debt obligations on Everquest Financial. Calls made to the firm were not returned by press time.
Bear is the second major investment bank to see a hedge fund burned by the spike in delinquencies. Last month, UBS shuttered its year-old hedge fund Dillon Read Capital Management, which also suffered big losses in the subprime mortgage market.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.