More Bear Baiting of Market Worries

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Another day, another troubled Bear hedge fund. This time the fund in question has no subprime exposure, just $900 million in other, presumably happier mortgage-backed securities. Bear is not phased, and sticking to its failing fund playbook (right now they’re on step 2):
1. Freeze redemption requests
2. Deny that the fund will be shut down
3. Put your junk in that box, for lenders
4. Make the lenders open that box, only to realize they have a bunch of illiquid crap
5. Try to bail fund out
6. Shut fund down
7. Walk away, whistling "Sweet Georgia Brown"
Bear’s denial stage of fund grief, from the Wall Street Journal:

A spokesman for the firm disputes that, however. "There are no plans to shut down the fund," said Russell Sherman, a Bear spokesman. "We believe the fund portfolio is well positioned to wait out the market uncertainty. And we believe by suspending redemptions, we can ensure the best long-term results for our investors. We don't believe it's prudent or in the interest of our investors to sell assets in this current market environment."

Wall Street, Bear Stearns Hit Again By Investors Fleeing Mortgage Sector [Wall Street Journal]

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