Another Bear Hedge Fund Spanked

Celebrities always die in threes. But hedge funds?

Investors in Bear's highly leveraged fund won't likely see a dime. The other, less leveraged fund, might return 15 cents on every dollar invested. Maybe.

But what about the third fund that everyone missed? True, this fund is not an all out debacle. But street scuttlebutt has the third fund down close to double digits in a single month, steep losses for fixed income investors to swallow, particularly if they had money in the other two vehicles. Jitters surrounding these funds dragged down the ABX index on Monday. The Ghostbusters could not contain this slime.

I don't know who Jeff Lane is going to call, but he has some serious bailing to do. Some sort of fund acquisition might be his only hope to grow assets. And the seller is likely to hold all the cards in that game.

Given the lack of decorum they have recently exhibited, I would like to remind the boys at Bear that tradition dictates they follow one rule.

Women and children first. And no mulligans either, Jimmy.
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.

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