NEW YORK--(BUSINESS WIRE)--Zamansky LLC announces that it is investigating the Catalyst Hedged Futures Strategy Fund (MUTF:HFXIX)(“Catalyst Fund”) over its reported loss of $600 million or 15% in one week, as reported in the Wall Street Journal. The Catalyst Fund, which invests in long and short call and put options on Standard & Poors’ 500 Index futures contracts, has also seen its price fall recently from $12 per share to around $9 per share. The Fund is supposed to be a low risk fund which seeks capital appreciation and capital preservation in all market conditions, with low volatility and low correlation to the US equity market.
According to Jake Zamansky, securities fraud attorney, the Catalyst Fund trades options and derivatives which can cause drastic downside risk exposure. These strategies have large potential risk for investors under certain market conditions, Zamansky states. The Catalyst Fund is not appropriate or suitable for investors who want or need a conservative or low risk investments such as retirees, he says, and no financial advisor or stockbroker should have sold it that way or recommended it to these investors.
Zamansky LLC is investigating whether sales of the Catalyst Fund to investors by stockbrokers and financial advisors were suitable and appropriate. The law firm is also investigating whether the Catalyst Fund properly disclosed the risks of its strategies and trading to investors.
What Catalyst Fund Investors Can Do
If you are an investor in the Catalyst Fund who wishes to discuss their legal rights, or an investor who was sold the Catalyst Fund who wishes to have your investment or portfolio reviewed for suitability, you may, without obligation or cost to you, email jake@zamansky.com or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm specializing in securities, mutual fund, hedge fund and ERISA class action litigation, and FINRA securities arbitration. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.