Bear Stearns probe may focus on conference call-WSJ

NEW YORK, Feb 15 (Reuters) - An investigation into the collapse of two Bear Stearns Co BSC.N hedge funds could hinge on whether managers misled investors about the funds' difficulties on a conference call last April, the Wall Street Journal said on Friday.

Citing people familiar with the matter, the Journal said Bear Stearns fund manager Ralph Cioffi told participants on an investor call on April 25, he was "cautiously optimistic" about Bear's ability to hedge its holdings of securities tied to subprime loans.

Cioffi was at the same time continuing discussions in internal e-mails with colleagues in which he wondered if the declines in subprime securities would spell trouble for the funds, the Journal said.

Bear Stearns was not immediately available for comment. (Reporting by Yinka Adegoke; Editing by Paul Bolding)