WEST PALM BEACH, FL (www.hedgeco.net) – Bear Stearns president, Warren Spector says the rumors of hedge fund crisis are simply exaggerated. Spector said, �We have done a lot of double checking andtriple checking to make sure that none of our counterparties are blowing up.� Spector made his remarks at the Morgan Stanley sponsored conference on Tuesday.
The global equity markets were rattled last week at the downgrading of General Motors and Ford Motors bonds to a near junk bond status. Analysts are also troubled by the rapidly rising dollar as well as the declining oil markets. Such events led to some panic selling among rumors that some large hedge funds encountered significant losses.
Such rumors have been finally laid to rest as some of the rumored hedge fund managers spoke for themselves. Spector mentioned, �It is not surprising that some clients lost money.� He explained further that a lot of margin calls were initiated to some hedge funds, which borrowed money from investment banks. Spector added, �I hear a lot of rumors that I don�t believe, and virtually none that I do believe.
Other hedge fund industry participants also echoed Mr. Spector�s remarks as well.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is the most popular hedge fund database and community in the world. Membership on HedgeCo.Net is free and easy. We also offer free listings for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
