Securities Arbitration Lawyers BlogDid You Invest in the AllianceBernstein Securitized Asset LP?
Silver Law Group, a nationally-recognized stockbroker misconduct law firm, is investigating AllianceBernstein Securitized Asset LP (ABSA or Fund) on behalf of shareholders in the Fund, due to ABSA’s recent news to its shareholders.
ABSA is a pooled investment hedge fund, sold by Alliance Bernstein, whose “. . . portfolio is concentrated in mortgage-related securities, it also invests in asset-backed securities, consumer whole loans, and collateralized loan obligations, providing exposure to underlying collateral across residential and commercial mortgages, consumer and auto loans, as well as corporate loans.”
AllianceBernstein Securitized Asset is a private placement investment, which is illiquid, can carry high commissions, and is not subject to more strict regulation under securities laws. Often, broker dealers and financial advisors orally tout these kinds of funds as safe investments that are guaranteed to grow and provide stable income. Unsuspecting investors, who trust their advisor and/or broker, often fall victim to these kinds of unsuitable recommendations. Unfortunately, many of these private placements, like ABSA, drop in value and the investor suffers large losses in a non-tradable security and cutoff from the income stream they depended on.
Due to the extreme disruption in the markets from COVID-19, ABSA announced to its shareholders that the value of the fund had plummeted and that it was suspending both distributions and redemptions.
ABSA recently revealed to investors that the NAV of the fund is down approximately 50% on a year-to-year basis.
ABSA further announced that it is “suspending redemptions and income distributions (including the payment of March 31 redemptions) at this time and will assess reinstatement of liquidity terms going forward as circumstances dictate.”
ABSA also announced that it will not reinstate redemption and distributions until March 31, 2021: “The Fund will seek to reinstate redemption terms and income distributions (for those investors who elected to receive distributions), no later than March 31, 2021. If redemption procedures are not reinstated per above, the Fund will harvest the existing portfolio and return capital to investors in the manner provided in the Fund documents.”
Recovering Money Lost With AllianceBernstein Securitized Asset LP
If you suffered losses with AllianceBernstein Securitized Asset LP, we’d like to hear from you. Contact us to discuss your options to recover losses.
Silver Law Group’s nationally-recognized attorneys represent investors in class actions against issuers in state or federal court, as well as securities arbitration claims against brokerage firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact Scott Silver for a no-cost consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.