Unsuitable Sales of Managed-futures Funds

by InvestorLawyers on December 26, 2013

in FINRA,Merrill Lynch,Morgan Stanley,SEC,Securities Fraud,Suitability

Investment fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of investing in managed-futures funds offered by Morgan Stanley Smith Barney (MSSB). MSSB subsidiaries Merrill Lynch Alternative Investments LLC and Ceres Managed Futures also are being investigated, among others.

Unsuitable Sales of Managed-futures Funds

According to a recent Bloomberg article, U.S. Securities and Exchange Commission data indicate that in dozens of managed-futures funds, 89 percent of the gains were used to pay commissions, fees and expenses instead of being returned to investors. Furthermore, securities arbitration lawyers say that in light of the fees, stcckbrokers and financial advisors  who recommended such funds may have and made that recommendation despite the investment’s unsuitability.

According to investment 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. If a firm fails to make suitable recommendations, investors may be able to recover losses through FINRA arbitration.

Morgan Stanley and Ceres managed-futures funds include:

  • Morgan Stanley Smith Barney Spectrum Select L.P.
  • Morgan Stanley Smith Barney Spectrum Strategic L.P.
  • Morgan Stanley Smith Barney Spectrum Global Balanced L.P.
  • Morgan Stanley Smith Barney Spectrum Technical L.P.
  • Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P.
  • Managed Futures Premier Aventis II L.P.
  • Managed Futures Premier BMH L.P.
  • Managed Futures Premier Warrington L.P.
  • Managed Futures Premier Graham L.P.
  • Meritage Futures Fund L.P.
  • LV Futures Fund L.P.
  • Polaris Futures Fund L.P.

Merrill Lynch managed-futures funds include:

  • ML BlueTrend FuturesAccess LLC
  • ML Aspect FuturesAccess LLC
  • ML Transtrend DTP Enhanced FuturesAccess LLC
  • ML AHL FuturesAccess LLC
  • ML Systematic Momentum FuturesAccess LLC
  • ML Winton FuturesAccess LLC

Other managed-futures funds include:

  • Altegris Winton Futures Fund L.P.
  • RJO Global Trust
  • Grant Park Futures Fund L.P.
  • Campbell Strategic Allocation Fund L.P.

If you suffered significant losses because of an unsuitable recommendation of managed-futures funds, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C.  at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

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