Netfolio, one of the two pioneers of the basket-trading concept along with Foliofn, has all but been subsumed by Bear Stearns. James O'Shaughnessy, the firm's founder, joined the Bear Stearns fund unit in December.

An assistant to O'Shaughnessy in his New York City office referred questions to Bear Stearn's public relations director who would not comment; the firm plans a press conference three weeks from now. Netfolio had been based in Greenwich, Connecticut.

Reports are that Bear Stearns Asset Management will formally take on the subadvisory duties for three Canadian funds -- O’Shaughnessy Canadian Equity Fund, O’Shaughnessy U.S. Growth Fund, and O’Shaughnessy U.S. Value Fund -- that had been managed by Netfolio for Royal Bank of Canada.

The move allows O'Shaughnessy to remain as the portfolio manager of the funds. The funds have just more than $200 million in assets. 

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