Bear Stearns to close event-driven fund

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Bear Stearns Asset Management is closing its event-driven fund following poor performance and in the wake of the firm’s acquisition by JPMorgan.

BSAM will close the Bear Stearns Focused Opportunities Fund, managed by Kenneth Cavazzi and Erik Jacobson. BSAM has not determined the exact timing of the shutdown.

The managers have had a difficult time this year, with the fund suffering a 12.8% loss for the first quarter. By comparison, the Absolute Return Event Driven Index lost 3% in the same period.

The fund’s annualized return since inception is a mere 2.6%. It launched with $10 million of seed capital