The Ramius Strategic Volatility Fund Down Over 40% In 2014

The Ramius Strategic Volatility Fund, which trades under the ticker symbols RVOAX and RVOIX, is a non-diversified fund that seeks positive returns during extended bear markets. The fund seeks to invest in a portfolio of actively managed swap agreements strategically tied to “dynamic long volatility” indexes and “persistent long volatility” indexes.

In 2014, the A-class shares, RVOAX, were down 40.69% for the year. In addition to poor performance, the fund has high fees (over 2%) and an annual turnover of 0% versus a category average of 479%.

As of September 30, 2014, the fund, managed by Vikas Kapoor and Stuart Davies, held a 65% cash position along with difficult to value, illiquid assets.

If your financial advisor or stockbroker recommended that you invest in the Ramius Strategic Volatility Fund, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in the Ramius Strategic Volatility Fund, then you may have a claim for misrepresentation. If your investment objective was to only invest in safe and stable investments, you may have a claim for unsuitability. If the Ramius Strategic Volatility Fund made up a large portion of your portfolio, then you may have a claim for over-concentration and lack of diversification. If your advisor purchased this fund without your knowledge, you may have a claim for unauthorized trading. If your advisor purchased this fund on margin, you may have a claim for excessive use of margin and negligence.

The attorneys at Carlson & Associates, P.A., located in Miami, Florida, represent investors who have lost money due to the improper conduct of financial advisors. If you would like to have a free consultation, we can be reached at (305) 372-9700 to discuss your options.