Investors should take advantage of their due diligence services, before they get stuck in what they refer to as the fund on fund, or limited partnership high fee parking lot
(PRWEB) June 05, 2013
The Wall Street Fraud Watchdog is urging investors already stuck in a fund on fund investment, or limited partnership sold to them by their stock broker, or investment advisor to use their due diligence service to see if any wrongdoing has taken place, and or if there is any way for the investor to get their money out, without a significant reduction in their principal investment amount. At the same time they are urging high net worth investors to use their due diligence service before they invest hundreds of thousands, or millions of dollars into a fund of fund limited partnership that involves parking the money for five years, or more. The group's concern about these types of investments is they may be overly weighted with fees, they do not offer instant liquidity, and after the management fees are taken out, may not offer a very good return on investment. For more information please contact the Wall Street Fraud Watchdog at 866-714-6466.
The Wall Street Fraud Watchdog says, "Current fund of fund investors, or investors who were sold a limited partnership by their stock broker, or investment advisor should immediately examine the management and incentive fees they are charged. Fund of funds have multiple levels of management fees and incentive fees. The overall fund manager frequently selects the underlying funds, and charges a managements fee of 1-2%, in addition to an incentive fees of 10-20%. The underlying funds charge the same. Thus, there could be two duplicative levels of fees. Unbelievably, fund of fund investment products may also charge a management fee on top of both levels of fees- a third level of fees. Fund on fund managers may also charge large up front commissions (7-10%) on limited partnerships investments they recommend, and sell to clients, and then charge a management fee when the passive limited partnership requires no management. These investments may be gouging investors, and may constitute a breach of the fund manager’s fiduciary duty, and we are urging investors who feel like they have already been taken to the cleaners, or investors on the verge of throwing down hundreds of thousands, or millions of dollars to use our extremely thorough due diligence service." For more information please contact the Wall Street Fraud Watchdog at 866-714-6466. http://WallStreetFraudWatchdog.Com
According to US News and World reports on September 20th 2012, "Hedge Fund fund of funds are risky. Because they have the freedom to use leverage, the possibility of losses as well as gains are magnified. One National Bureau of Economic Research study found that, "The risks facing hedge funds are non-linear and more complex than those facing traditional asset classes. Such risks are currently not widely appreciated or well-understood." http://WallStreetFraudWatchdog.Com
The Wall Street Fraud Watchdog says, "The part we can't figure out is after all we have gone through in the last six years, why would a high net worth individual park hundreds of thousands, or millions of dollars into a investment product they could not touch for six, or seven years? We do not think this is what smart investors want, nor do we think parking all of your money in any type of security is always in the best interest of an investor, especially if the investment product is a fund on fund, or limited partnership investment involving extremely high fees, and no way to get your money out for five, or more years. How does an investor win with something like this? We also need to emphasize we are talking about investors in all states including California, New York, Florida, Texas, Ohio, Massachusetts, Maine, Washington, Michigan, North Carolina, Nevada, Iowa, Idaho, Maine, Montana, Arizona, Alabama, Missouri, and Minnesota."