Bear Stearns shutters asset-backed fund


Bear Stearns Asset Management is closing a hedge fund that invested in asset-backed securities after that fund suffered steep losses.

It is the third fund in the past year that Bear Stearns has liquidated following similar declines. In June, Bear announced it was shuttering two structured credit funds managing $1.5 billion that were hit hard by the subprime mortgage crisis.

Bear Stearns launched its Asset-Backed Securities fund in January 2000, and through last June the fund reported a year-to-date return of 4.46% and an annualized net return since inception of 26.5%, according to an investor.

The fund struggled over