Bear Stearns High Grade Hedge Funds
In July 2007 two Bear Stearns proprietary hedge funds, the Bear Stearns High Grade Structured Credit Strategies hedge funds managed by Bear Stearns’ investment management division, Bear Stearns Asset Management, Inc,. blew up due to toxic subprime investments securities in their portfolios. The funds were touted by Bear Stearns as being relatively safely invested in AAA and AA rated securities, whereas they were actually loaded up with CDOs with massive exposure to subprime mortgages. This blow up, which caused investors to lose approximately $1.5 billion, marked the beginning of the current worldwide financial crisis. The two managers of the funds are under federal indictment for securities fraud and other charges.
The Firm presently represents investors worldwide who lost approximately $50 million in group arbitrations at FINRA against Bear Stearns and various affiliates related to the Bear Stearns High Grade Structured Credit Strategies hedge funds. Such investors include hedge funds, fund of funds, family offices and other institutional investors and high net worth individuals.