For many years, energy company stocks and other energy-related investments were considered to be among the more-stable opportunities on the market for individual investors. While no investment is ever a sure thing (and if someone says they can offer you guaranteed returns, you should probably run the other way), oil, gas and renewable energy companies were long viewed as wise investments within a broader investment portfolio.
But, times have changed. While the price of oil has risen slightly in recent months, the major energy companies are still forecasting minimal growth (at best) over the near term. Their stocks are down, and some blue chip companies’ bonds are even being downgraded below investment grade.
As a result of all of this, many individual investors are facing sizable investment losses – and in many cases, it’s not their fault. From over-concentrating in the energy sector to failing to monitor their clients’ investments, many brokers and advisors are now facing investigations and lawsuits over investors’ losses. At Zamansky LLC, we are actively investigating many investors’ claims, and we may be able to help you if you have experienced substantial losses in any of the following types of investments.
Common Types of Energy Investments
Oil, Gas and Energy Stocks
If you own or recently owned stock in an oil, gas or other energy company that declined substantially in value, your broker or advisor may have owed a duty to try to protect you against your losses. Brokers and advisors who recommend energy stocks are required to pay attention to the market and react to events like the drop in the price of oil before it’s too late.
Energy Company Bonds and Bank Bonds
Many individual investors were also sold energy company bonds and bank bonds tied to the price of oil. Today, many of these bonds are now considered “junk,” and investors with bank bonds that had capped upside potential are now facing the prospect of unlimited losses.
Investors are also losing money in mutual funds that are heavily concentrated in energy stocks and bonds. A mutual fund is a type of investment that essentially involves pooling investors’ principal to buy a more-diversified portfolio. Unfortunately, some fund managers put too much faith in energy, and advisors failed to protect their clients when energy-focused mutual funds began to slide.
Master Limited Partnerships
A master limited partnership (MLP) is a special type of partnership that offers securities similar to the stocks of publicly-traded corporations. MLPs are common in the energy sector, and in recent years many advisors have purchased MLP exchange-traded funds and mutual funds on behalf of their clients. Many advisors continue to make similar recommendations today.
As with the other energy-related investments discussed above, if your advisor inappropriately recommended MLP investments or over-concentrated your savings in energy-related MLPs, you could be entitled to financial compensation for your investment losses.
Speak With an Investment Fraud Attorney About Your Oil, Gas, or Other Energy Investment Losses
At Zamansky LLC, we help investors who have suffered substantial losses seek financial compensation. If you have recently suffered losses in energy-sector investments, we encourage you to schedule a free consultation about your rights. If your broker or financial advisor is to blame, we will fight to make sure you receive the compensation you deserve. Call (212) 742-1414 or contact us online to speak with an attorney about your case today.