Following a shakeup within a couple of its prominent hedge funds, Bear Stearns will be looking to add risk controls within its asset management division, reports The Wall Street Journal. The firm will be adding risk managers to its asset-management division. The company will likely also be asking the risk-management team within its asset management unit to report to Michael Alix, the parent company’s chief risk officer.
The moves come on the heels of Bear’s hiring of Jeffrey Lane, a former vice-chairman at Lehman Brothers, on Friday to lead the asset-management unit. Lane started work on Monday, and is likely to offer additional tweaks to the company’s management structure.
Bear Stearns Asset Management has been suffering lately as its High-Grade Structured Credit Strategies Fund and High-Grade Structured Credit Strategies Enhanced Leverage Fund have been losing significant value amidst weakness in the subprime mortgage bond sector.