The SSEK New Orleans Overconcentration Law Firm is Representing Louisiana Investors Who Were The Victims of Broker Negligence or Fraud
Shepherd Smith Edwards and Kantas (investorlawyers.com) are proud to represent investors from Bayou State who have been the victims of excessive concentration by their financial advisors. From our Metairie, LA securities law offices, we offer robust securities representation and personalized attention to retail investors, retirees, accredited investors, seniors, high-net-worth investors, ultra-high-net-worth investors, and institutional investors.
Why Overconcentration Is Unsuitable For Most Investors
Concentration is an investing strategy sometimes purposely used by brokers of accredited investors, wealthy investors, sophisticated investors, and institutional investors with these clients’ authorization. However, for most other investors, highly concentrating their portfolios with one security, asset group, or investments from a single industry sector can be a very risky and unsuitable strategy.
Overconcentration usually involves a failure to diversify. Diversification when investing is a key part of minimizing risk and volatility while rendering more stable returns over a period of time. As market conditions change, it may be necessary to reallocate assets in a portfolio to better reflect your investing needs, financial goals, liquidation needs, and more.
According to the Financial Industry Regulatory Authority (FINRA), there are several factors that can cause a concentration risk:
Intentional concentration: The investor makes a purposeful decision to invest heavily in a certain asset, asset class, or industry, such as the technology sector or the oil and gas industry.
Concentrating a portfolio with illiquid investments: This can include private placements or other alternative investments.
Concentration as a result of asset performance: A certain investment might perform well and cause your portfolio to become over-concentrated with it. Your financial advisor should be properly monitoring your account to make the necessary changes to mitigate any increase of risk that has become too high for you.
Concentration involving correlated assets: When there are too many investments in a portfolio that have the same traits or come from the same sector, the risk of loss can be greater. If one of the investments loses value, the rest of them could follow.
Not all concentration issues warrant grounds for a broker fraud lawsuit. However, when a financial advisor fails to conduct the proper due diligence to ensure proper diversification, doesn’t make sure an investment recommendation is suitable for a customer, deliberately overconcentrated your account for churning purposes, or neglect to properly monitor your portfolio, you may be able to sue for damages.
Why Hire Our New Orleans, Louisiana Overconcentration Law Firm?
Shepherd Smith Edwards and Kantas has been exclusively representing investors against brokerage firms and investment advisers for over 30 years. We know how to examine your portfolio and other key communications to determine whether you were the victim of excessive concentration and if your financial advisor should be sued for damages.
Filing a claim against your broker-dealer will generally require that you go to FINRA arbitration. This is not the same as going to court. You want to retain savvy Metairie, LA concentration attorneys that know how to maximize your chances for a full recovery in this legal forum.
With over a century’s worth of combined experience in securities law and the securities industry, our Louisiana securities law firm has the skills, knowledge, and resources to take on the most complex cases against the largest brokerage firms on Wall Street.
How To Contact Us:
Unfortunately, concentration and even overconcentration by brokers continue to happen. A financial advisor may get excited about a new, “hot” alternative investment, especially if it will pay them high commissions and fees. They may go overboard by infusing an investor’s portfolio with too much of it. Should the investment plunge in value, fail, or prove fraudulent, this lack of diversification could lead to serious losses.
In Jefferson Parish, East Baton Rouge Parish, Orleans Parish, St. Tammany Parish, Lafayette Parish, Beauregard Parish, and throughout Louisiana, call (504) 324-0252 or (800) 259-9010 or fill out this contact form.
Our Louisiana Overconcentration Law Office:
3850 N Causeway Blvd #200-B
Metairie, LA 70002
Because we work on a contingency basis, if we decide to work together, you will only pay for our New Orleans concentration attorneys for our securities law services if we obtain financial recovery for you. Payment would come from your award or settlement and not your own pocket.