Bear names chief investment strategist

Bear Stearns & Co. said today that it hired Jonathan Golub, formerly a U.S. equity strategist at J.P. Morgan Asset Management, as its chief investment strategist and senior managing director, according to Crain’s New York Business.
Based in Manhattan, Mr. Golub succeeds Francois Trahan, who left Bear in February to become head of portfolio strategy and quantitative research at Manhattan-based investment research firm ISI Group Inc. Mr. Golub will report to Bear’s director of global equity research, Kay Booth.

In his first market prediction at Bear, Mr. Golub told investors on Wednesday that the Standard & Poor’s 500 Index would climb to a record 1,700 next year, 8.8% higher than the S&P’s Wednesday close of 1,562.47.

Bear is in the throes of recovering from the subprime mortgage crisis that roiled financial firms and the U.S. economy this summer. In October, Bear Chief Executive James Cayne told investors that the firm was on the road to a slow recovery, dispelling rumors that it was seeking a cash infusion from outside investors. The remarks discredited speculation that Warren Buffet might buy a 20% stake in the company.

And Mr. Golub won’t be the only new face. In June, Bear demoted Richard Marin, its head of asset management, replacing him with former Lehman Brothers executive Jeff Lane. Mr. Cayne said the move was meant to “restore investor confidence” after two of the money management unit’s hedge funds nearly collapsed.

Last month, Bear blamed mortgage woes for a 62% drop in third-quarter profits. The company’s fixed-income segment, which includes its mortgage business, saw earnings tumble 88% to $117.6 million in the third quarter.