FS Global Credit Opportunities Fund Losses?

Did You Suffer Losses By Investing In FS Global Credit Opportunities Fund (FSGCO)?

The investment loss recovery lawyers at Soreide Law Group are reviewing potential investor claims against financial advisors and securities brokers who possibly made unsuitable or misrepresented recommendations and sales of FS Global Credit Opportunities Fund (FSGCO). Here's more on the investment and what you could do if you experienced losses.

What Is FS Global Credit Opportunities Fund?

Evidently, FS Investments (formerly known as Franklin Square Capital Partners) aims to help investors access alternative sources of income and growth. In December 2013, it launched FS Global Credit Opportunities Fund (FSGCO). Evidently, FSGCO is a non-diversified, closed-end fund managed by FS Global Advisor LLC.
The fund aims to generate an attractive total return with a secondary objective of capital appreciation. It targets undervalued companies that are out of favor or are changing. The fund believes that those companies have upside potential and can generate growth and income. FSGCO has $2,300,000,000 in assets under management as of June 2021. Its portfolio mainly consists of senior secured loans and senior secured bonds.
Evidently, FS Global Credit Opportunities Fund-A (FSGCO-A), FS Global Credit Opportunities Fund-D (FSGCO-D), FS Global Credit Opportunities Fund-T (FSGCO-T), FS Global Credit Opportunities-T2 (FSGCO-T2), and FS Global Credit Opportunities Fund-ADV have merged into FSGCO as of December 2020.

What Are The Risks Of FSGCO?

FSGCO is a speculative and high-risk fund. Still, some financial advisors or securities brokers may have inappropriately sold or recommended this investment to those with conservative investment objectives and liquidity needs. It is also possible that some financial professionals may have misrepresented or downplayed risks.
For example, FSGCO is not appropriate for investors who need liquidity (access to the money they invest). It appears that the fund has a share repurchase program, which can potentially offer liquidity; however, it can discontinue this program at any time.
Notably, the fund says that shareholders should not expect to be able to sell their shares regardless of FSGCO's performance. If a shareholder sells their shares, they will probably receive less than their purchase price or NAV. As of June 2021, the NAV is $7.66 per share, down $2.34 from its initial offering price. Moreover, publicly available information indicates that some investors have sold shares in the secondary market for approximately $4.25 per share. This means that investors who purchased at inception could potentially face significant losses through selling shares in the secondary market.

Harmed By Investing In FS Global Credit Opportunities Fund?

Have you incurred losses or damages by investing in FS Global Credit Opportunities Fund because of your financial advisor or securities broker? If so, touch base with Soreide Law Group at (888) 760-6552 and speak with a skilled securities lawyer about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has meaningfully helped recover compensation for hundreds of clients in the United States who their securities brokers and financial advisors have harmed.