Vida Longevity Fund, LP
The Vida Longevity Fund, LP (VLF) is an open-ended hedge fund involved in non-correlated investment strategies that are insurance-linked and concentrated in longevity-contingent risks. Launched by Austin, Texas-based asset management company Vida Capital, Inc. in 2010, the Fund invests primarily in insurance products including life settlements, structured settlements, and annuities.
Unfortunately, there is growing concern that Vida Capital may have been improperly valuing its assets and that some brokerage firms and their registered representatives misrepresented the risks involved in Vida Longevity Fund.
Brokers also may have unsuitably recommended the Fund to retail investors, retirees, inexperienced investors, and conservative investors who are unable or unwilling to take on much risk. Or, they may have failed to conduct the proper due diligence to ensure the accuracy of the Vida Longevity Fund’s valuations even as they earned high fees and commissions from selling this hedge fund to customers.
Our securities fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are speaking with Vida Longevity Fund investors who have sustained losses from this investment. Contact us today at (800) 259-9010 today for your complimentary, no-obligation initial consultation.High Fees & Commissions Provide Incentive for Brokers to Market & Sell Vida Longevity Fund
Vida Longevity Fund offers three share class that charge substantial fees:
- Class A Shares charge a 5% incentive fee and 2% management fee
- Class B Shares charge a 10% incentive fee and a 1.5% management fee
- Class C Shares charge an up to 15% incentive fee and a 1.75% management fee
Class A Share investors reportedly must invest $510K at minimum. Investors of the other two class shares must reportedly each invest at least $225K. Vida Longevity Fund is clearly not for your typical retail or conservative investor.
By 2018, more than 3,600 investors had reportedly invested nearly $1.2B in the Fund since its 2010 inception. An early prospectus promised there would be yearly returns of 10-14% and liquid profits on a quarterly basis.Recent Changes to Vida Longevity Fund’s Valuation Processes Raise Red Flags
Unfortunately, returns for Vida Longevity Fund have been substantially lower than they were in previous years. This downturn was happening even prior to COVID-19 striking in 2020 to wreak havoc on the markets.
In April 2020, the Fund announced that it had made changes to its valuation processes and acquired a company that would improve its algorithmic processes. In October 2020, Vida Longevity Fund said it was modifying its management structure and conducting an “exhaustive review” of its underwriting and portfolio management practices.
It also noted that it would be revising life expectancy reports on old policies so that they would be more in line with current and projected mortality rates. One can’t help but wonder, why were these changes necessary and what does this say about past valuations and their accuracy?
These activities have raised concerns that the Fund’s assets were not properly valued. If this is the case, your investment may be worth less than you think.Alternative Investments are Complex, Risky Investments
Vida Longevity Fund is a complex, alternative investment. Like all alternative investments, the Fund is risky, illiquid, and better suited for sophisticated investors, such as high net worth individual investors and institutional investors.
It is also important to note, however, that there are sophisticated investors that also may have been unsuitably recommended this investment by their brokerage firm, suffering unnecessary and significant investment losses as a result.Experienced Vida Longevity Fund Investor Law Firm
Contact SSEK Law Firm today if you are a Vida Longevity Fund investor and you would like to explore your legal options.
Our broker fraud lawyers have spent more than 30 years fighting for retail investors, retirees, high net worth individual investors, and institutional investors. We have represented thousands of clients, collectively recovering many millions of dollars on their behalf. Should we agree to work together, any legal fees would only be due upon financial recovery and never out of your own pocket.