Saturday, 25 October 2014
Last updated 11 hours ago
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.
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…
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