Do You Know What Your Alternative Investment Is Worth?

You may be holding an alternative investment in your portfolio such as a hedge fund, real estate investment fund (REIT), private placement or Reg. D offering.

Alternative investments are investments that are not publicly traded stocks, bonds, mutual funds, exchange-traded funds or other traditional investments. They are any investment that is not publicly-traded or listed on an exchange like the NYSE or NASDAQ.

Your alterative investment may not be worth what is listed on your account statement.

On September 23, 2022, it was reported that the SEC ramped up its scrutiny of brokerage firms for failing to report true values of alternative investments on customers’ brokerage account statements. During an economic downturn, private investments may not “write down” their values until too late, or long after an investor can no longer exit the investment. The SEC announced that it was reviewing the “write-down” practices of firms which may have an incentive to maintain inflated values of alternative investments because they receive management fees based on the value of the assets.

What You Can Do

If you have a concern over the value of your alternative investment, you can contact our firm for a review of the investment without obligation or cost to you. We are experienced alternative investment fraud attorneys. Please contact our firm by email at jake@zamansky.com or call (212) 742-1414.