The UBS Willow Fund
The UBS Willow Fund (Willow Fund) is a hedge fund that was 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. The Fund was originally formed on February 1, 2000 to invest primarily in debt securities. In 2008, the Willow Fund allegedly changed its investment strategy and began to concentrate in foreign sovereign credit default swaps (CDS) which resulted in losses of $106 million the following year. After sustaining massive losses, UBS announced in 2012 that it was liquidating the Willow Fund.
Upon its liquidation, investors received notice from Sam Kim, the portfolio manager for the Willow Fund. The notice attempted to offer an explanation for the fund’s significant losses, asserting that the losses were a result of incorrect speculation on credit default swaps on foreign sovereign debt. Mr. Kim claimed that the incorrect speculation caused 70% of the Willow Fund’s losses.
Securities Fraud Attorneys Investigate the Willow Fund
Zamansky LLC, a Wall Street securities fraud law firm, is currently investigating whether the Willow Fund deviated from its primary debt strategy, and suffered losses from speculating in foreign sovereign credit default swaps (CDS). Our firm believes that the Willow Fund failed to sufficiently disclose its risks to investors. The Willow Fund’s original offering documents never made reference to the foreign sovereign CDS trades, and failed to explain the risks associated with such an investment strategy.
Zamansky LLC is also investigating claims that UBS and its advisors sold the Willow Fund to their customers through false advice, promoting the Willow Fund as “safe” and “secure,” and/or recommending investing in the fund even though it was an unsuitable investment for the particular customer. UBS advisors sold the Willow Fund to retirees and other investors seeking conservative investments as a secure, income-investment that lacked the volatility of the stock market. UBS customers believed that they were investing safely when this was not the case. In short, investors may have received unsuitable, fraudulent or negligent investment advice by UBS.
Hedge funds are high-risk investment vehicles, and their failure may be more likely than with other investment vehicles.- Jacob H. Zamansky
Experienced Hedge Fund Fraud Lawyers Can Pursue Your Claim
Zamansky LLC has recovered millions of dollars in securities fraud cases against brokers and their investment firms. The hedge fund fraud attorneys at our firm have decades of experience helping individual and institutional investors recapture losses resulting from unsuitable, negligent and fraudulent investment advice. Our attorneys have the experience, skills and resources necessary to aggressively research and pursue UBS Willow Fund cases. We are currently investigating potential claims that will hold UBS liable for losses resulting from the Willow Fund.
If you invested in the Willow Fund and suffered a loss, contact our securities fraud law firm today at 212-742-1441 or complete our online contact form. Zamansky LLC offers no-cost initial consultations with experienced securities fraud attorneys and will respond to your inquiry within 24 hours.