UBS Willow Fund

Securities fraud attorneys continue to investigate claims on behalf of investors who suffered significant losses in UBS Willow Fund investments. Despite the fact that many customers were allegedly told the fund was safe and low-risk, it suffered a decline of around 80 percent. In addition, the fund may have deviated from the investment strategy it originally disclosed to investors, and this alleged deviation may have played a significant role in the decline of the fund.

UBS Willow Fund Allegedly Deviated from Strategy, Declined 80 Percent Investors Could Recover Losses

Created as a private hedge fund in 2000, the UBS Willow Fund was sold by UBS Financial Services. Reportedly, an announcement in October 2012 stated that the UBS Willow Fund would be liquidated. On September 6, 2013, the fund’s shareholder report stated, “The fund does not hold investments as of June 30, 2013.”

It’s possible that UBS did not adequately disclose the risks of the fund when making recommendations. Furthermore, many of the investors who received recommendations to invest in the fund reportedly had low risk tolerances and were seeking stable income. According to stock fraud lawyers, firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses in the UBS Willow Fund, sold by UBS Financial Services. Formed in 2000, the UBS Willow Fund is a private hedge fund. Reportedly, investors were notified in October 2012 that the Willow Fund had sustained substantial losses and would be liquidated.

Allegedly, UBS may have offered and sold the UBS Willow fund to investors — particularly customers with low risk tolerance seeking stable income, such as retirees — while marketing it as a safe, reliable investment. However, the fund has suffered a decline of around 80 percent. Investigations are also underway to determine if UBS Financial Services adequately disclosed or misrepresented the material risks of this investment to clients.

In some cases, securities fraud attorneys say that investors’ portfolios may have been over-concentrated in the UBS Willow Fund. If so, these portfolios may have been mismanaged, given that risk management strategies were available that would have offered investors protection for the value of their portfolio.

Articles Tagged with UBS Willow Fund

UBS Willow Fund Allegedly Deviated from Strategy, Declined 80%: Investors Could Recover Losses

UBS Willow Fund Declines 80%, Investors Could Recover Losses