Florida Overconcentration Lawyers

Our Florida Overconcentration Lawyers in Our Tampa, Florida Securities Law Firm Have Been Representing Sunshine State Investors Against US Broker-Dealers For 35 Years 

From Florida retirees to young investors, as well as institutional investors and wealthy, accredited investors, Shepherd Smith Edwards and Kantas (investorlawyers.com) represents those in The Sunshine State who have suffered losses because their financial advisor neglected to properly diversify their investment accounts. This is also called overconcentration, and it is one of the most common causes of action made in investment loss recovery lawsuits.

 

If you are wondering whether you were the victim of excessive concentration by your broker, contact our Tampa securities law office today. This is a serious matter and you may have grounds for financial recovery.

Why Is Overconcentration a Bad Idea For Most Florida Investors?

According to the Financial Industry Regulatory Authority (FINRA), there is a “risk of amplified loss” that can happen when a large chunk of an investor’s holdings is placed in one investment, asset class, or market segment in proportion to the rest of what is in their portfolio.  This can happen in several ways:

Intentional concentration: This is done on purpose by the investor, who believes that a concentrated approach will actually benefit them. It is important to note, however, that deliberate concentration is usually only an appropriate strategy for accredited and sophisticated investors that know what they are doing, understand the risks, and have an investment account that can weather losses.

Asset performance-related concentration: An investment in someone’s portfolio performs so well that it starts to make up a disproportionately large portion of their overall account. This can lead to serious losses if this investment suddenly does poorly and the rest of the account is not diversified enough to withstand this decline.

Company stock concentration: An employee invests too much of their retirement money in their employer’s stock.

Correlated asset-related concentration: The investments may be different, but they belong to the same industry or are the same kind of security. This could make them highly correlated and vulnerable to being impacted by the same events. For example, an investor may have money in a Real Estate Investment Trust (REIT), a Delaware Statutory Trust (DST), and a real estate fund. All of these are different types of investments, yet they are likely subject to the market forces that could affect the real estate industry.

How Can Our Tampa, Florida Failure To Diversify Lawyers Help?

Many of the clients we represent are the victims of overconcentration in their account by their financial advisor. With over 100 years of collective experience in securities law and the securities industry, Shepherd Smith Edwards and Kantas has the skills, knowledge, and resources to pursue excessive concentration lawsuits against even the largest Wall Street brokerage firms.

Sometimes, what looks like a properly diversified portfolio is, in fact, an overconcentrated one. It is one of the reasons that you need trusted Florida securities attorneys to examine your account and determine the case of your losses.  If you do have grounds for a failure to diversify claim, and we decide to work together, trust that you will receive quality securities representation and personalized attention.

Your securities claim would likely be brought in FINRA arbitration. Shepherd Smith Edwards and Kantas would conduct a thorough investigation into your overconcentration losses, prepare your lawsuit, and file your case for you. We would preside over any settlement talks and/or represent you before the panel of arbitrators.

Excessive concentration may be a result not only of a failure to diversify but also because of an unsuitable recommendation, negligence, gross negligence, unauthorized trading, selling away, breach of fiduciary duty, churning, Regulation Best Interest violations, or a failure to supervise by the broker-dealer. Our Tampa investment loss recovery attorneys can determine whether any of these causes of action were involved and include them in your Florida overconcentration case.

Contact Our Tampa Overconcentration Law Firm: 

More than 90% of our clients have secured full or partial financial recovery with our help. Call (813) 560-2992 or (800) 259-9010 or fill out this contact form.

Our Florida Overconcentration Lawyers:

407 N Howard Ave #201A
Tampa, FL 33606