Bear Seizes Own Hedge Fund’s Assets

Jul 27 2007 | 1:37pm ET

Just a month after scrambling to prevent lenders from seizing the assets of two troubled hedge funds, Bear Stearns is getting in on the action itself.

The New York-based investment bank seized securities from its High-Grade Structured Credit Fund—the fund it gave a $1.6 billion lifeline—to “protect against future price declines,” Bear spokesman Russell Sherman told Bloomberg News. The High-Grade Structured Credit Leverage Fund was the victim of an asset seizure—though not of the in-house variety—last month.

Bear said it expects to lose no money from its assumption of the $1.6 billion debt last month—recently reported to be down to $1.4 billion. But like the funds’ other investors, who learned two weeks ago that their investments had lost essentially all their value, Bear will probably be out its own $34 million investment. It will also probably not see $43 million in unsecured loans it made to the funds, and has decided to forego its management fee, costing it about $30 million.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR