Bear Stearns reported $44.6 billion in assets under management in its fourth quarter ended Nov. 30, down 22.8% from the previous quarter and 15% below the fourth quarter of 2006. The drop was caused by a transfer of assets to a newly formed minority-owned affiliated asset manager and reductions in alternative assets under management, according to a company statement. Net revenues from the asset management arm dropped 32% for the fiscal year to $228 million from $336 million in 2006; write-offs and lower management fees related to hedge funds drove the decline. Fourth-quarter revenue totaled $111 million, down from $113 million in the fourth quarter of 2006.
Bear Stearns reported companywide net income of $233 million for the year, down from $2.1 billion in 2006, thanks to a $1.9 billion write-down of subprime mortgage-related securities.