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Hedge Funds

The Law Offices of Robert Wayne Pearce, P.A. has Hedge Fund cases because they were touted as the panacea for bad markets. Hedge Fund managers claimed to offer diversification through investments that purportedly were not correlated with other asset classes (i.e., they go up when others go down and visa-versa). However, according to Attorney Pearce, in 2008-2009 many investors found out the hard way that was untrue when most investments became correlated and all suffered tremendous losses at the same time. Hedge Funds simply did not perform as hyped and fund managers hid important facts from investors. The common thread in Hedge Funds that has led to many cases is the lack of registration, lack of disclosure, and lack of regulatory oversight (although changes are belatedly underway) making them ripe for fraud and unsuitable investment recommendations.

Representing clients throughout Florida and nationwide.

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Hedge funds are similar to mutual funds in that they pool and invest investors' money in an effort to earn a positive return. Many hedge funds seek to profit in all kinds of markets by using leverage, short-selling, and other speculative investment practices that are not typically used by mutual funds. Unlike mutual funds, hedge funds are not subject to some of the regulations that are designed to protect investors. Hedge funds are not required to follow any standard procedure when calculating performance, and they may invest in securities that are illiquid and difficult to value. On the other hand, federal securities laws specifically prescribe a mutual fund's methodology for advertising and calculating current yield, tax-equivalent yield, average annual total return, and after-tax return. Any investor provided with performance data for a hedge fund, should verify whether it reflects cash or assets actually received by the fund as opposed to the manager's estimate of the change in value of fund assets and whether the data includes deductions for fees.

Hedge fund investing can pose several risks for inexperienced and risk averse investors. One of the primary risks associated with hedge fund investing is management's use of leverage. Hedge funds also invest in other non-conventional securities such as derivatives (options and futures), and they engage in short-selling strategies (selling a security it does not own), which can likewise increase the potential for major losses to its investors. In addition, hedge funds are able to suspend redemptions in certain scenarios, including in times of market distress or when their investments cannot be quickly or easily liquidated. Furthermore, hedge funds may charge investors a redemption fee before allowing them to cash in shares. Hedge funds may also invest in highly illiquid securities. Investors are encouraged to fully understand a hedge fund's valuation process and know the extent to which a fund's securities are valued by independent sources. Investors should also keep in mind that valuations of fund assets will affect the fees that the manager charges.

For more information about Hedge Funds and our cases and investigations, click on the links below:

Free Initial Consultation With Hedge Fund Investment Dispute Attorneys

The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and Hedge Fund investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.

For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.

Client Reviews
Robert Pearce is part of that unusual breed of lawyers that are able to create empathy with clients and thoroughly adopt their cause. No half efforts here. He and his group of professionals are outstanding strategists that can execute with precise fervor and unyielding determination. Theirs is a huge wave of facts, research, precedents and preparation, that has impressed me in its thoroughness and creativity, and most importantly with the results. No stone goes unturned and no effort is ever spared. In my book, he and they are those of a very rare kind that one wants to keep for a very long time. Ramon F.
This law firm is the real deal. We were so lucky that they took our case as they have so much experience in securities and all the wrongdoing that happens in these investment companies where they mislead you and your money (as in our case) into schemes that are not what you think they are. Mr. Robert Pearce is one of the best lawyers around, a truly professional who will fight for you and will tell you as it is all the time. Astrid M.
Mr. Pearce is a great professional and attorney. He led me through every step of the process in a clear, direct and straightforward manner. I highly recommend him as a securities attorney. Rey S.
Just like the song from HAMILTON, it's so nice to have Bob Pearce on your side. He is the consumate plaintiff's lawyer: smart. dedicated, fully able to try a case but a great negotiator in a mediation. He did a wonderful job for us, fully supporting us through the process and more than holding his own against a large national law firm. Maurice Z.
No lawyer except Bob said I had a chance of winning. When Ubs lawyers laughingly offered me zero to settle the dispute, Bob became even more determined to prove everybody wrong. Bob was extremely prepared, and always a step ahead of the opposing attorneys throughout the arbitration. In the end, Bob and I had the last laugh when the arbitrators awarded me almost 6 million dollars. J. Blanco