LJM Preservation and Growth Fund is a high-risk alternative mutual fund. According to LJM Fund’s prospectus, the objective of the fund is “capital appreciation and capital preservation with low correlation to the broader U.S. equity market.” Despite these claims, LJM Fund’s stated objective appears to be in conflict with the risky investment strategies they have executed.
According to CityWireUSA, “LJM Partners’ Preservation and Growth fund shut down completely after losing over 80% in two days.”
Fund investors have accused LJM of exposing them to high-risk investing instead of working to preserve capital. Fund investors are now seeking millions of dollars for their losses.
Peiffer Wolf Carr Kane & Conway represents investors who have incurred significant losses. If you are a LJM Fund investor with concerns, Contact Us immediately for a FREE Consultation by filling out an online Contact Form or by calling 585-310-5140.
In February 2018, the LJM Preservation and Growth Fund suffered a huge plummet in value of over 80% in two days. The major decline occurred over the two-day span of Febraury 5 and February 6. To make matters worse, the fund did not report the February 5 loss until late the next day, so shareholders were left in the dark.
The fund lost 55% on Monday, Feb. 5, after the volatility index, the VIX, spiked a large amount in one day about 20 points. It’s not the highest the Volatility Index has ever reached, but it was a large spike. What that does is the options in the fund, the value of them changes drastically when volatility picks up like that. As a result, the value of the fund drops severely. They likely had a margin call that evening which contributed to a second-day loss of 56% when the managers essentially liquidated out of all of their put and call options. Combined, the loss was a total of about 82% over a two-day period which is extremely severe for a mutual fund.
(Gretchen Rupp, interviewed by Karen Wallace for MorningStar)
The fund placed colossal bets using elaborate option strategies that relied on the market remaining calm and not experiencing volatility. These risky bets resulted in the LJM Fund losing about $600 million in investor money. Now, investors are contacting the securities lawyers at Peiffer Wolf Carr Kane & Conway.
If you have invested in the LJM Preservation and Growth mutual fund, please Contact Us immediately for a FREE Consultation.
In 2018, LJM Preservation and Growth Fund’s strategy lost more than 80% percent of its value in two days. The result? “Assets of $805 million in January were less than $10 million by March, when the fund shuttered.”
If you are/were a LJM Fund investor, Contact Us Today by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation.
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