Investigations

UBS WILLOW FUND

Board IQ Features FINRA Arbitration Case We Filed Against UBS To Recover UBS Willow Fund Losses

On April 9, Board IQ, a service of Money-Media and the Financial Times, published an article featuring the FINRA arbitration case we filed against UBS on behalf of an investor to recover his UBS Willow Fund losses. The article was entitled, “UBS Willow Fund a Parable for Would-Be Alt Investors.”

In the article, which is available by subscription, arbitration attorney Jake Zamansky is quoted: “We believe the directors should be held accountable, because they were supposed to be supervising [the portfolio manager] and we’ve heard that they actually approved the strategy change.” He added, “When you make a change like that, you have to either notify the investors or give them an opportunity to redeem their investments.”

We currently represent several UBS Willow Fund investors in FINRA arbitration cases, and we are continuing to gather important evidence that will assist in our efforts to recover investors’ losses.

If you sustained losses in the UBS Willow Fund, please contact our firm using the contact form on the right of this page or by calling (212) 742-1414 for a free consultation on your legal rights.

New York Times Features Case Our Firm Filed Against UBS for UBS Willow Fund Losses

The Sunday New York Times reported on FINRA arbitration cases which our firm filed against UBS to recover investor losses regarding the UBS Willow Fund.

The Times reported that “What happened to the Willow Fund is a cautionary tale for any investor who entrusts his or her money to an investment fund.” The Times reported that the fund manager “switched gears” and “abandoned the corporate debt markets he was familiar with and piled into some colossally bad derivative trades.”

If you sustained losses in the UBS Willow Fund, contact our firm. To review a copy of the New York Times article click here.

Press Release: Zamansky LLC Announces Filing of a FINRA Arbitration on Behalf of an Investor in the UBS Willow Fund LLC

New York, New York April 1, 2013 — Zamansky LLC has filed the first reported FINRA arbitration on behalf of a 70-year-old retiree who was an investor in the UBS Willow Fund LLC (”UBS Willow Fund”). The case is Boudreau v. UBS Financial Services Inc., FINRA No. 13-00542.

The Statement of Claim in the arbitration alleges that the UBS Willow Fund was a purported distressed debt fund that was recommended and sold by UBS Financial Services to its brokerage customers. The Statement of Claim alleges that the UBS Willow Fund materially deviated from its disclosed strategy of investing in distressed debt, and instead speculated in foreign sovereign debt credit default swaps (CDS). The Statement of Claim alleges that these foreign sovereign CDS carried risks that were far greater in magnitude and different in nature than those disclosed to investors. The Statement of Claim also alleges that investors were never made aware of the change in fundamental strategy, and that these CDS eventually sank the UBS Willow Fund causing it to suffer 70% or more losses. The investor asserts claims of unsuitability, breach of fiduciary duty and failure to properly supervise and seeks damages of $300,000 for the losses incurred.

The problems associated with the UBS Willow Fund are discussed in a March 30, 2013 New York Times article entitled “If A Fund Turns On A Dime, Watch Your Dollars,” by Gretchen Morgenson.

FINRA arbitration attorney Jacob Zamansky states that “UBS failed to inform investors that the Willow Fund was deviating into a strategy of CDS speculation on the government debt of Spain or Greece.” He also states that “the Willow Fund had ceased analyzing hard assets and collateral. UBS financial advisors also have duties to monitor the Willow Fund, and advise their clients when the risks fundamentally changed towards speculation.”

What UBS Willow Fund Investors Can Do

If you invested in the UBS Willow Fund, and would like to have your brokerage accounts reviewed or discuss your legal rights, 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 one of the leading law firms specializing in securities fraud, FINRA arbitration and class action litigation. Our FINRA attorneys represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.

Zamansky LLC Launches Investigation into UBS Willow Fund Losses

Zamansky LLC is currently investigating the UBS Willow Fund (“Willow Fund”), a hedge fund offered and sold by UBS Financial Services Inc. (“UBS”).  The Willow Fund was a distressed debt fund that, near its peak, had close to $400 million in assets under management.  Recently, UBS announced that it was liquidating the Willow Fund, after it had sustained substantial losses.

Zamansky LLC is investigating whether the UBS Willow Fund deviated from its primary distressed debt strategy, and suffered losses from speculating in foreign sovereign credit default swaps (CDS).  In 2008, the Willow Fund began to concentrate in foreign sovereign CDS which caused it losses of $106 million the next year.   Its recent liquidation after 70% or more losses resulted from speculative foreign sovereign CDS trades.   Zamansky LLC believes that the Willow Fund failed to sufficiently disclose its risks to investors.

Zamansky LLC is also investigating claims that UBS and its advisors sold the Willow Fund to their customers through false advice  that it was “safe” and “secure,” or where it was an unsuitable investment for the customer.  Many retirees and other investors seeking conservative investments were sold the Willow Fund by their UBS advisor as a safe, income-investment that lacked the volatility of the stock market.  UBS customers believed that they were investing in safely when this was not true.   In short, investors may have received unsuitable, fraudulent or negligent investment advice by UBS.

If you invested in the Willow Fund and suffered a loss, please contact Jake Zamansky at 212 742-1414 or jake@zamansky.com for a free and confidential consultation with one of our securities attorneys.

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