Have you lost considerable money from a hedge fund investment? Do you believe your broker or financial advisor was not truthful with you when the hedge fund was sold to you? Did you believe that you are the victim of hedge fund fraud or other hedge-fund-related wrongdoing?
Hedge fund fraud can occur in various ways, starting with potential investors not being fully apprised of the risks involved in making such an investment. A financial loss in a hedge fund may or may not have stemmed from fraud or other wrongdoing. To determine if you should pursue legal action against a financial advisor, banker, broker, or hedge fund manager, you should turn to an attorney who fully understands hedge funds and has extensive experience litigating hedge fund cases.
Cases involving hedge funds can include many different types of wrongdoing, including fraud, negligence, undisclosed conflicts of interest, a stockbroker or brokerage firm failing to conduct adequate due diligence on the hedge fund, or the hedge fund being engaged in a Ponzi scheme.
Was investing in a hedge fund suitable in your situation? Were material facts concerning the hedge fund omitted to you as a potential investor? Did the brokerage firm or bank that recommended the hedge fund investment fail to properly conduct due diligence on the hedge fund before selling it to you?
If you have suffered a significant financial loss with your hedge fund investment in Los Angeles, Levin Law can help you recover your losses.
Hedge funds are companies in which a professional money manager or advisor pools the funds of outside investors for investment purposes. Investors may be high net worth individuals or institutional investors.
Hedge funds are generally limited liability companies that can invest in anything from stocks and bonds to real estate, junk bonds, and more. Unlike mutual funds, hedge funds are not required to disclose the specific investments made by the hedge fund. The fund also does not have to immediately honor your request to withdraw your funds, meaning that your investment might remain “stuck” in the hedge fund or otherwise remain illiquid. Many hedge funds essentially operate in secret, which makes it difficult to understand what you are invested in and what exactly is happening with your money.
Hedge funds are minimally regulated and minimal regulations and operate differently than other investment vehicles. Investors give a hedge fund manager capital, and then the manager is allowed to invest in whatever way he or she chooses. Generally, the hedge fund manager receives a percentage of the returns on investments. Unfortunately, due to a generally low level of oversight on many hedge funds, hedge fund negligence and fraud is common.
When hedge fund managers misrepresent or omit material information, engage in fraud, fail to disclose how the fund has performed in the past, contact us today. If they distort the actual risks of investing in the hedge fund, engaged in conflicts of interest, or if a broker or banker has failed to conduct adequate due diligence on the hedge fund before selling it to you, please contact Levin Law for a free case evaluation. We will work aggressively in seeking maximum recovery of your losses. Your initial consultation is free, and we work on a contingency fee basis.