Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281-1414

Tel: (212) 436-2000
Fax: (212) 436-5000
www.us.deloitte.com





                         INDEPENDENT ACCOUNTANTS' REPORT

The Bear Stearns Funds
575 Lexington Avenue
New York, New York 10022

We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940 that The Bear Stearns Funds (the "Fund's") complied with the
requirements of subsections (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 ("the Act") as of March 30, 2001. Management is responsible
for the Fund's compliance with those requirements. Our responsibility is to
express an opinion on management's assertion about the Fund's compliance based
on our examination.

Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of March 30, 2001, and with respect to agreement of security
purchases and sales, for the period from February 20, 2001 (the date of our last
examination) through March 30, 2001:

     --        Confirmation of all securities held by institutions in book entry
               form for the account of CTC by The Depository Trust Company,
               and/or the Federal Reserve Book Entry System, and/or Participants
               Trust Company, agents of CTC;

     --        Confirmation of all securities hypothecated, pledged, placed in
               escrow, or out for transfer with brokers, pledgees and/or
               transfer agents;

     --        Reconciliation of all such securities to the books and records of
               the Funds and the Custodian;

     --        Confirmation of all repurchase agreements with brokers/banks and
               agreement of underlying collateral with CTC's records; and

     --        Agreement of 5 security purchases and 5 security sales or
               maturities since our last report from the books and records of
               the Fund's to broker confirmations.

We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.











In our opinion, management's assertion that The Bear Stearns Funds complied with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of March 30, 2001 with respect to securities reflected in
the investment account of the Fund is fairly stated, in all material respects.

This report is intended solely for the information and use of management of The
Bear Stearns Funds and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.




/s/ DELOITTE & TOUCHE LLP
-------------------------
Deloitte & Touche LLP
May 4, 2001





                                              BEAR STEARNS FUNDS MANAGEMENT INC.

BEAR STEARNS FUNDS MANAGEMENT INC.               575 Lexington Avenue, 9th floor
                                                        New York, New York 10022
                                                                  (212) 272-2093






                 MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH
            CERTAIN PROVISIONS OF THE INVESTMENT COMPANY ACT OF 1940



We, as members of management of The Bear Stearns Funds (the "Funds"), are
responsible for complying with the requirements of subsections (b) and (c) of
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940. We are also responsible for
establishing and maintaining effective internal controls over compliance with
those requirements. We have performed an evaluation of the Funds' compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 as of March 31,
2001 and from February 20, 2001 (the date of Deloitte & Touche LLP's last
examination) through March 31, 2001.

Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of March 31, 2001 and from February 20, 2001 (the date of
Deloitte & Touche LLP's last examination) through March 31, 2001, with respect
to securities reflected in the investment accounts of The Bear Stearns Funds.


/s/ FRANK J. MARESCA
--------------------
Frank J. Maresca
President



/S/ VINCENT PEREIRA
-------------------
Vincent Pereira
Executive Vice President