Levin Law Investigates Investor Losses in Infinity Q Diversified Alpha Fund

April 27, 2021 Author: Brian Levin

Fund Suspends Redemptions and Announces Plan to Liquidate Amid Valuation Issues

The national securities law firm Levin Law, P.A., is investigating losses related to investments in Infinity Q Capital Management funds, including the Infinity Q Diversified Alpha Fund. An investigation by the U.S. Securities and Exchange Commission (SEC) into incorrect valuations of complex derivatives resulted in the immediate halting of redemptions and shutting of the nearly $1.8 billion Fund.

If you have suffered losses as a result of investing in Infinity Q Diversified Alpha Fund, you might be entitled to compensation. Levin Law founder and managing partner Brian Levin has recovered millions of dollars on behalf of clients. Contact Levin Law today at (305) 402-9050 or by emailing contact@levinlawpa.com for a free consultation. 

SEC Probe into Incorrect Valuations

As first reported by Bloomberg on February 22, a federal inquiry into the valuation methods used by Infinity Q Diversified Alpha Fund (“Fund”) founder, and Chief Investment Officer James Velissaris caused parent company Infinity Q Capital Management (“Infinity Q”) to immediately halt redemptions without warning to investors. 

Velissaris was placed on leave, effectively being locked out of the Fund after questions began to arise about his valuation of complex derivatives. 

Request to Halt Redemptions and Liquidate Fund

Infinity Q requested to halt redemptions noting an inability to value certain Fund holdings and were therefore unable to calculate net asset value. The company states that it needs time to determine the reliability of previous valuations and is in the process of liquidating the Fund. Infinity Q had used models from a third-party pricing vendor to calculate the fair value of swap instruments (Swaps) in the Fund’s portfolio.

Allegations to the SEC order include that Velissaris had been “adjusting certain parameters with the third-party pricing model that affected the valuation of the Swaps.” Infinity Q has hired an independent valuation expert to determine an accurate valuation of the Swaps but says it could take weeks or months to receive reliable valuations, satisfy requests for redemptions of Fund shares and identify the extent of the impact.

Contact Levin Law for a Free Case Evaluation

If you have suffered losses as a result of investing in Infinity Q Diversified Alpha Fund, contact Levin Law, P.A. immediately for a free case evaluation. It is believed that Infinity Q and its representatives may have made false or misleading statements to Fund investors and failed to disclose knowledge of incorrect valuations.

Contact attorney Brian Levin directly at (305) 402-9050 or via email at contact@levinlawpa.com. All consultations are free. Most cases are accepted on a contingency fee basis, meaning that clients are not responsible for Levin Law attorneys’ fees unless money is recovered on their behalf.

About Levin Law

Levin Law is a premier national securities, commodities, and class action law firm. Brian Levin, Levin Law’s managing attorney, has obtained settlements and recoveries in excess of $100,000,000 in assets through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.

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