Bear Stearns Hedge Funds now virtually worthless investors are now told
Posted by admin at 10:32 AM. Filed under: Uncategorized
Two Bear Funds Nearly Worthless, Investors Told.
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A Fortnight after the collapse of two prominent Bear Stearns Cos. hedge funds that gambled unsuccessfully on the market for risky home loans , the brokerage has told the funds’ investors that the portfolios’ assets are almost negligible, according to people familiar with the affair.
The assets in Bear’s more-levered fund, the High-Grade Structured Credit Strategies Enhanced Leverage Fund, are worth virtually nothing , according to people familiar with the matter. . The other fund, the larger one of the two have seen its net worth slashed by almost 91 percent and is now widely regarded to be heading for the same result as the first one. The April valuations were not immediately available, but in March, before their sharp losses , the enhanced leverage fund had 638 million dollars in investor money , while the other fund was estimated to be worth just over 900 million.
The two funds have been in the spotlight for weeks after suffering heavy falls in the sub prime market. It was at the end of last month that Bear Stearns arranged a secured loan to try and stabilise matters with the larger of the two funds and then give it some time to try and unwind where it has all appeared to go wrong for the fund.
The information was given to shareholders and partners earlier today and the brokerage is expected to make a comment to others later this evening. A spokeswoman for the brokerage did not return calls for opinion.
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Tags: Debt+Consolidation, bankruptcy, debt+consolidation, Personal+Bankruptcy, Debt+Management, debt, Bankruptcy+Personal+Loan, Filing+Personal+Bankruptcy
