Market Losses in LJM Preservation and Growth Fund
There was a lot of volatility in the stock markets in early February 2018. On February 2, the S&P 500 index lost about 1.67%, before losing another 3.36% on February 5, only to gain back about 3% on February 6.
One particular fund, the LJM Preservation and Growth Fund, declined over 55% in one day, on February 5, 2018. However, the LJM Preservation and Growth Fund did not report its losses until the next day on February 6, which caused it to fall another 50%, or over 80% in a two-day span. The fund was purported to use market volatility to benefit its investors, but clearly it failed. The fund suffered losses because of use of leverage, margin, and option trading.
When financial advisor or stockbrokers recommend an investment, they have a duty to perform reasonable research and due diligence on the product so that they can adequately explain those risks to potential investors. Moreover, the investment or fund has to be suitable for the investor, considering their age, risk tolerance, investment objectives, net worth, and other factors. If the financial advisor failed to adequately explain the risks of an investment, or failed to recommend a suitable investment, the financial advisor, stockbroker, and his or her brokerage firm may be liable for losses.
Similarly, if your financial advisor or stockbroker failed to adequately explain the risks of investing in the LJM Preservation and Growth Fund, or if this investment was not suitable for you, you may be able to recover your losses.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Seattle, Washington; Denver, Colorado; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states and have represented over one thousand investors.
If you lost money in the LJM Preservation and Growth Fund, please CONTACT US at 720-599-3505 to discuss all legal options.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.