Did Your Broker Unsuitably Recommend Hatteras Investment Partners Funds? Shepherd Smith Edwards and Kantas Investment Loss Recovery Lawyers Are Investigating Broker-Dealers For Negligence
If you suffered losses in a Hatteras Investment Partners Fund, Shepherd Smith Edwards and Kantas Investment Loss Recovery Lawyers (investorlawyers.com) want to talk to you. We have reason to believe that broker-dealers may have unsuitably recommended the following to investors:
- Hatteras Core Alternatives TEI Fund
- Hatteras Core Alternatives Fund
- Hatteras Core Alternatives TEI Institutional Fund
- Hatteras Institutional Fund
Once reportedly touting $1.5B in assets under management (AUM) in 2014, Hatteras Investment Partners’ assets declined to around $400M in 2021. The alternative asset firm sold its funds to The Beneficient Company Group that year in a liquidation move.
In a Securities and Exchange Commission filing, Hatteras noted that the Hatteras Master Fund, L.P. exchanged interests in the Adviser Funds for interests in the Beneficient Preferred Series B-2 Unit Accounts. Hatteras also signed a Registration Rights Agreement with Beneficient.
It is important to mention that Beneficient also has ties to GWG Holding, which filed for Chapter 11 bankruptcy protection in 2022 and is accused of operating a more than $1.6B Ponzi scam. Our GWG L Bond lawyers are currently representing dozens of investors in their L Bond loss recovery claims against broker-dealers.
In 2024, a class action securities fraud lawsuit alleging breach of fiduciary duty was filed against Hatteras directors and officers related to the Hatteras Investment Partners Funds. The plaintiffs contend that decisions were made that purportedly caused serious investor losses.
Hatteras Investment Partners Fund Investors May Have Lost 95% of Their Money
In 2023, Beneficient merged with Avalon Acquisition, Inc. The deal turned Beneficient into a public company valued at $3.5B. As part of the merger, Hatteras preferred shares became Beneficient Class A common stock at $8/share price. Unfortunately, Beneficient’s stock price later plunged in value to $0.08/share, which may have caused Hatteras fund investors to sustain serious losses of up to 95%.
Why You May Have Grounds For A Broker Fraud Case Over Your Hatteras Investment Losses
Some reports say that Hatteras directors recently admitted to due diligence failures, especially in the wake of fraud allegations facing Beneficent founder Brad Heppner. However, the financial advisors that marketed and sold Hatteras Investment Partners Funds also had a duty to conduct a thorough investigation to make sure that these were appropriate investment recommendations to make to customers, including retail investors, retirees, and seniors.
Unsuitable investment recommendations are one of the most common reasons that investors end up losing money. So are breach of fiduciary, due diligence failures, misrepresentations and omissions of the risks, negligence, broker fraud, financial advisor misconduct, and a failure to supervise.
What Should You Do If You Sustained Losses In a Hatteras Investment Partners Fund?
If you contact our Hatteras investor loss attorneys today, we can help you explore your legal options during a free, no-obligation case assessment. Even though investors filed a class action lawsuit if you do have grounds for suing your stockbroker, your best bet for maximizing your chances for a full financial recovery is to file your own individual claim in Financial Industry Regulatory Authority (FINRA) arbitration.
Our alternative investment fund loss recovery lawyers represent US investors in pursuing the damages they are owed by broker-dealers and investment advisors. With a combined more than 100 years of experience in securities law and the securities industry, Shepherd Smith Edwards and Kantas Investment Loss Recovery Lawyers have the skills, experience, and knowledge to provide seasoned securities representation. We also have securities law offices all over the United States to better serve our clients.
Call (800) 259-9010 or fill out this contact form.