Bear cashes out failed fund

Bear Stearns has seized the assets from one of its troubled hedge funds, according to published reports.
JUL 27, 2007
By  Bloomberg
Bear Stearns Cos. Inc. has seized the assets from one of its troubled hedge funds, according to published reports. New York-based Bear Stearns will continue to liquidate its High-Grade Structured Credit Strategies Fund, one of two failed hedge funds. Bear Stearns took the assets after waiting more than a week for more cash to repay its $1.6 billion line of credit—which was intended to bail the fund out, a source told The Wall Street Journal. The firm hopes to establish hedges in order to protect against falling prices in the future, Bear Stearns spokesman Russell Sherman told Bloomberg. The event is another chapter in the firm’s saga of its failing hedge funds. Last week, the firm said that investors in the High-grade Structured Credit Strategies Fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund had lost their money and were unlikely to get it back. At the time, the Enhanced Leverage lost all of its value, while its sister fund lost more than 90% of its value.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.