According to Jake Zamansky, “the continued losses by the Fund and Feeder Funds raise issues over whether the investment was suitable for investors, and the risks properly disclosed by financial advisors at Morgan Stanley, UBS Financial, Merrill Lynch.
New York, New York (PRWEB) February 20, 2013
Zamansky & Associates LLC announces that it is investigating Paulson & Co.’s (“Paulson”) Advantage and Advantage Plus hedge funds (the “Funds”) as well as related feeder funds sold by major brokerage firms such as Morgan Stanley, Citigroup, UBS Financial and Merrill Lynch. According to a January 8, 2013 report by Kelly Bit of Bloomberg News, Paulson’s Advantage Fund lost 51% in 2011, and 19% in 2012. As a result, in May 2012, HITC Business reported that Morgan Stanley Wealth Management had put the Funds on its “watch” list, and now is advising customers to redeem. On August 23, 2012, Bloomberg News reports that Citigroup made a similar decision and pulled $410 million from Paulson’s funds.
Many of the major Wall Street brokerage firms such as Morgan Stanley, Citigroup, UBS Financial Services and Merrill Lynch invested in the Paulson funds through proprietary “feeder” funds, according to SEC filings. SEC filings show that the feeder funds have various names such as UBS Paulson Advantage Fund, LionHedge Paulson, Paulson Advantage Access Fund, Morgan Stanley HedgePremier Paulson, and CAIS Paulson. According to Zamansky, these feeder funds all invest in Paulson’s Funds, representing to investors that they provide due diligence or oversight over the Funds which is not necessarily true.
The Funds’ continued losses, as well as the losses suffered by the feeder funds, raise serious questions for investors, Jake Zamansky believes. In February 2012, an investor sued the Paulson funds in a class action lawsuit, titled Culverhouse v. Paulson & Co., Inc., docket no. 12-cv-20695-MGC (S.D. Fla.). The lawsuit focuses on the Paulson Funds' investment in Sino Forest which resulted in a reported loss of $460 million. The now bankrupt Sino Forest was accused of running a “multi-billion dollar Ponzi scheme” by analyst Muddy Waters, and an Independent Review Committee subsequently verified many of the accusations. In the lawsuit, Paulson and the Funds were charged with breach of fiduciary duty for investing deeply into Sino Forest without sufficient due diligence.
Zamansky & Associates LLC is investigating the many Paulson feeder funds sold by Morgan Stanley, Citigroup, UBS Financial and Merrill Lynch. According to Jake Zamansky, “The continued losses by the Fund and Feeder Funds raise issues over whether the investment was suitable for investors, and the risks properly disclosed by financial advisors at Morgan Stanley, UBS Financial, Merrill Lynch and Citigroup”.
Investments in private hedge funds are high risk, speculative ventures, Jake Zamansky believes, which should only be entered into by persons wealthy enough and sophisticated enough to appreciate the risks. Feeder Fund investors may also have a claim against their brokerage firm for failing to monitor or supervise the risks of the Paulson Funds, according to Jake Zamansky.
What Fund Investors Can Do
If you would like to discuss your legal rights and how you might recover your losses from the Paulson or feeder funds, you may, without obligation or cost to you, email jake(at)zamansky.com or call the law firm at (212) 742-1414.
About Zamansky & Associates LLC
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about us, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414