Wednesday, 1 April 2015
Last updated 2 hours ago
Oct 31 2007 | 7:34am ET
Faced with what they call intransigence on the part of Bear Stearns, investors in one of its collapsed mortgage hedge funds are trying to dump the Wall Street firm as the fund’s controlling party in an effort to probe what went wrong.
More than 10% of the investors in the once-$650 million High-Grade Structured Credit Strategies Enhanced Leverage Fund have sought the change, triggering votes to be held on Nov. 7 at Bear headquarters in New York to oust the firm as the fund’s general partner, and a week later in London to replace five Bear-appointed directors at its overseas affiliate. The petitioners hope to have FTI Capital Advisors, a forensic accounting firm, named the new controlling party.
Reed Smith, the law firm representing the investors pushing for the change, says that Bear has not offered sufficient cooperation in the investigation to determine how the fund lost just about all of its value in the subprime downturn. The law firm said that it has mustered almost enough support to ensure Bear’s ouster. FTI would be charged with conducting a thorough investigation into the fund’s collapse.
But the victory is far from assured: As controlling party, Bear Stearns Asset Management controls the voting process. And while the proposal needs just a simple majority to pass, investors representing more than half of the fund’s initial capital must be present within a half-hour of the meeting’s start time. If they are not, Bear can cancel the vote.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…