Investors Lose Money After VLF Hedge Fund Loses Value
If you are someone who has suffered significant losses from investing in the Vida Longevity Fund, LP (VLF), you may have a reason for pursuing an investment fraud case against the broker or financial advisor that sold you this investment.
Unfortunately, this open-ended hedge fund, which is a Delaware limited partnership that invests primarily in longevity-contingent assets, including senior life settlements, has experienced a substantial decline in value. The market turbulence created by COVID-19 earlier this year didn’t help.
Our skilled hedge fund fraud lawyers are looking into claims that there are stockbrokers and investment advisors who may have made misrepresentations and omissions when persuading investors to buy into the Vida Longevity Fund. Some retail customers may have even been sold this investment even though it was clearly unsuitable for their portfolio, risk tolerance level, or investment goals.
If you are a VLF investor and you’ve sustained losses, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today.
Vida Capital Under Scrutiny Over Business Practices
The Vida Longevity Fund was launched by the asset management company, Vida Capital Inc., in 2010. According to the Austin, Texas-based company’s website, Vida Capital specializes in non-correlated investment strategies that are insurance-linked and concentrated in longevity-contingent risks. Investors of the Vida Longevity Fund can obtain cash liquidity on a quarterly basis.
Shares in the Vida Longevity Fund are offered in three classes. To invest in Class A Shares, investors are reportedly expected to put in at least $510K. In Class B and C shares, the minimum is $225K. All of the VLF shares charge substantial incentive and management fees.
Based on these requirements and charges alone, it is clear that this hedge fund is not for most conservative investors, such as retirees or inexperienced retail investors who are unable to take on too much risk.
Shareholders and investors have started asking questions about Vida Capital’s business practices, and there are concerns that securities laws may have been broken in relation to how the Vida Longevity Fund’s assets were valued.
There is even the possibility that misrepresentations were made regarding this hedge fund’s valuation. Not only that but there appear to be negative asset valuations, which may mean that your investment in this fund may not be worth as much as you think.
In the last couple of years, even before COVID-19, the Vida Longevity Fund reported significantly lower returns than previously.
High Risks of Vida Longevity Fund May Not Have Been Fully Disclosed To Customers
Other concerns that have come up is that investors who were sold the VLF investments may not have been told about the risks involved in such a speculative investment. Granted, the possibility of high returns may have existed, but so did the chance of big losses.
Our experienced stockbroker fraud attorneys represent investors throughout the United States who have suffered significant losses and want to recover their money from the brokers, investment advisors, and broker-dealers responsible.
SSEK Law Firm has successfully represented retail investors, senior investors, institutional investors, and high net worth individual investors for 30 years. Contact us today to discuss your Vida Longevity Fund losses and we can help you explore your legal options.