by Calculated Risk on 1/09/2008 07:36:00 PM

From Dow Jones (via the WSJ): Thornburg Sees Cuts In 4Q Book Value Due To Mtge Problems (hat tip idoc)

Thornburg Mortgage ... cut the book value of its portfolio by about $200 million in two months.
...
Thornburg also expects an additional $110 million decline in the market value of its adjustable rate mortgage portfolio during December, plus about $14 million in further declines due to changes in its interest rate swap agreements.

And from Bloomberg: Bear Stearns Shuts Asset-Backed Hedge Fund After Loss

Bear Stearns ... is closing a hedge fund that invested in asset-backed securities ... after the fund plummeted at least 39 percent last year.

... The fund lost more than $300 million between August and the end of November.

Bear Stearns said it would return $90 million in cash to investors immediately. The fund's remaining assets, which the company valued at about $500 million as of Nov. 30, will be sold and the proceeds refunded over an unspecified period of time ...

I wonder what investors think when the see the words "Bear Stearns" and "hedge fund"? Probably not happy thoughts.