Bear Stearns Invests in European-Based Hedge Fund Incubator.Business Editors NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of & LONDON--(BUSINESS WIRE)--April 9, 2003 The Bear Stearns Companies, Inc. (NYSE NYSE See: New York Stock Exchange : BSC (Binary Synchronous Communications) See bisync. ) Investment in Strategic Partners Fund Demonstrates Bear Stearns' Commitment To European Hedge Fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" Industry The Bear Stearns Companies, Inc. today announced an investment in an incubator fund designed to seed and cultivate start-up and emerging hedge funds, primarily those based in Europe. The Strategic Partners Fund will launch with initial capital of approximately $110 million, and expects to close with $500 million in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. over the next year. The fund is part of the hedge fund investment business managed by the Liberty Ermitage group, one of the largest offshore fund management operations in Europe and an investor in hedge funds since 1984. In addition to providing start-up capital, The Strategic Partners Fund will assist fund managers with other important aspects of their business including risk management, service provider selection and marketing services, among other things. Commenting on the investment, Richard Lindsey, president of Bear, Stearns Securities Corp., said, "We are extremely enthusiastic about entering this partnership. It enables us to form relationships with early stage hedge fund managers in the rapidly growing European hedge fund marketplace and it further solidifies our position as one of the leading prime brokers globally. This investment demonstrates our continued commitment to the European hedge fund industry and our desire to continue to grow our global prime brokerage Prime Brokerage A special group of services that many brokerages give to special clients. The services provided under prime brokering are securities lending, leveraged trade executions, and cash management, among other things. franchise." Liberty Ermitage manages more than $2.4 billion of discretionary assets, including approximately $1 billion in hedge fund assets. With operations in London, Bermuda, Jersey and Luxembourg, Liberty Ermitage is able to deliver a range of quality investment products to institutional and individual investors. Liberty Ermitage is 100% owned by the Liberty Group, the third largest life assurance company in South Africa which is part of the wider Standard Bank group, South Africa's leading bank. The Liberty Group and the Standard Bank group are listed on the London and Johannesburg Stock Exchanges with aggregate market capitalization of $6.3 billion. Bear, Stearns Securities Corp. provides financing, securities lending, clearing and technology solutions for approximately 2,800 clients, including hedge funds, money managers, registered investment advisors, short sellers, arbitrageurs and other professional investors trading at multiple trading firms. BSSC BSSC Building Seismic Safety Council BSSC Battle Staff Support Center BSSC Blessed Spiritshot C Grade (Lineage 2 game) BSSC Block Signature Self-Checking BSSC Binary Skew Symmetric Channel BSSC Bpx Switch and Service Configuration processes over 300,000 transactions daily and clears securities in more than 70 countries worldwide. BSSC also provides clearing, operational and administrative services for registered broker dealers, members of the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and/or the NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). who engage in the retail or institutional brokerage business. Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., a leading investment banking and securities trading and brokerage firm. With approximately $32 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the company has approximately 10,500 employees worldwide. For additional information about Bear Stearns, please visit the firm's Web site at http://www.bearstearns.com. |
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