The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended LJM Fund LP or other LJM offerings to investors.
According to Reuters, LJM Partners, LTD., a Chicago-based fund manager, reportedly closed its doors after its complex trade strategy failed on February 5 and the company and an affiliate saw losses of 80 percent or more.
Considered a “commodity trading adviser” or CTA, LJM Partners, managed a series of strategies that attempted to effectively make money from the difference between how much the market moves and how much investors are willing to pay to insure against those price swings.
According to a prospectus, LJM Fund, LP attempts to profit, primarily, from the volatility premium–the spread between implied volatility (investors’ forecast of market volatility reflected in options pricing) and realized (actual) volatility. The Fund aims to capture this premium by writing (selling) call and put options on S&P 500 Index futures.
Investments such as LJM Fund LP are complex, high risk investments that would only be suitable for sophisticated, high net worth investors.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so may be held responsible for any losses through FINRA Arbitration.
If you invested in LJM Fund or another LJM Partners offering at the recommendation of your financial advisor and would like to discuss your litigation options with a securities attorney, please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group and its investigations, visit www.whitesecuritieslaw.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.