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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note