Hedge Funds

Okumus abandons then stays with Bear after all

by

As rumors of Bear's impending demise the week of March 10 became a self-fulfilling prophecy, hedge funds did their best to distance themselves. But then, after JPMorgan came to the rescue, at least one fund reversed course.

On March 14, Okumus Capital wrote that it had ensured the "safety of our investor assets" by moving "all of the excess cash out of the account at Bear Stearns" and transferring it to new accounts at Deutsche Bank. But wait: On March 18, the firm assured clients "we will continue to use Bear Stearns as our prime broker" now that JPMorgan