Bear's HFs Maul Goldman's

Dec 14 2006 | 11:12am ET

Bear Stearns didn’t have quite the fourth quarter, or fiscal year, that Goldman Sachs did. Neither did anyone else, for that matter. But at least Bear’s hedge funds are heading in the right direction – north.

The Wall Street giant reported a 38% jump in net income in the fourth quarter to $563 million on a 28% surge in net revenues to $2.4 billion. For the full year ending Nov. 30, net income rose some 40% to $2.1 billion, a record for the firm, and revenues jumped by a quarter to $9.2 billion. In comparison, Goldman’s profits substantially skyrocketed 70% during the same period to $9.5 billion.

But whereas Goldman saw performance fees from its hedge funds plummet almost 80%, thanks to negative returns, including in its $10 billion Global Alpha flagship, Bear attributed the 66% jump in asset management revenues during the fourth quarter to an increase in hedge fund performance fees. It also said that the 45% jump for the full year was the result of both huge inflows of money into its alternative investment products, as well as the performance fees.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note