Hedge Funds Performance

Federal prosecutors continue dismemberment of Bear Stearns’ remains


Bear Stearns is gone, but federal prosecutors certainly haven’t forgotten the troubles the firm’s hedge funds set off in the market.

Federal prosecutors handling the probe into the $1.8 billion implosion of Bear’s credit hedge funds have expanded their investigation to include lenders involved with the firm’s High-Grade Structured Credit Fund and its High-Grade Structured Credit Strategies Enhanced Leverage Fund to establish whether those organizations were defrauded along with investors.

In particular, prosecutors are said to be looking at the bank financing and repurchase agreements used by the hedge funds prior to their collapse last summer. The matter