Mutual Fund Attorneys

ACAP Fund Losses

If you are an investor who suffered losses due to your financial advisor recommending you invest in the ACAP Strategic Fund, you may have a case against your advisor to recover some of those losses. Shepherd Smith Edwards and Kantas (investorlawyers.com) can help you explore your legal options for ACAP Strategic Fund losses.

What is the ACAP Fund?

The ACAP Strategic Fund is an equity-focused interval fund with SilverBay Capital Management serving as the Fund’s investment Advisor. Primarily, the Fund is focused on equity securities seeking rapid growth. The ACAP Fund also employs an aggressive short-selling strategy, seeking to find equities the Advisor believes are priced above their fair value. The Fund may also borrow money for investment purposes and can also generate further leverage through securities lending as well.

The Truth About the Risks Associated with ACAP Fund

The ACAP Fund’s practices of short selling, combined with the significant use of leverage, make this investment highly speculative and subject to a substantial amount of risk, which means the ACAP Fund is really only suitable for the most aggressive investors.

The performance of the ACAP Fund has been particularly volatile over the past few years after the fund hit a milestone high in December of 2022 with a valuation of just over $27 a share, only to fall precipitously since then, losing more than 40% of its value.

How Our Skilled and Experienced Mutual Fund Attorneys Can Help You Pursue Your Losses

While not all investment losses warrant grounds for financial recovery, if the risks were not appropriately disclosed or if an investment is unsuitable for an investor, the recommending advisor or their firm may have some liability for the losses.

For example, if your financial advisor made the recommendation for you to invest in the ACAP Fund without disclosing the many risks associated with this investment, marketed this speculative investment to you even though it was outside your stated risk tolerance and investment objectives, and/or overconcentrated your funds in this one particular investment, then you may be able to file a FINRA lawsuit against them and their broker-dealer for the damages you’ve sustained.

Our experienced investment attorneys are devoted to assisting institutional and individual investors nationwide to recover losses caused by the inappropriate actions of investment advisors and their firms. Many of the members of our firm are former brokers at the biggest broker-dealers in the US. It is because of the bad behavior we witnessed while working in the brokerage industry that we left to become securities attorneys who fight for investors while protecting their legal rights.

How to Contact Our Mutual Fund Attorneys

If you would like us to help you explore your legal options, please reach out to us to schedule your free consultation either by calling the number listed below or via email at either address also listed below.

(800) 259-9010