Soreide Law Group is investigating client losses in Infinity Q Capital Management LLC (Infinity Q), and in particular, Infinity Q Diversified Alpha Fund Investor Class (IQDAX), due to the recommendations of brokers.
In a recent article in InvestmentNews, they stated that the $1.8 billion fund has halted redemptions by investors due to the alleged portfolio manager fraud. On February 22, 2021, Infinity Q Innovative Investments informed their investors that it had received approval from the Securities and Exchange Commission (SEC) to “suspend redemptions and postpone the date of redemption payments beyond seven days” because it is “unable to value certain assets held in the fund.”
According to the SEC order, the Infinity Q Chief Investment Officer and founder, James Velissaris, made changes to the methodology for valuing certain assets held by its funds and this raised questions about the accuracy of the value of the fund holdings. As an open-end mutual fund it is required to be able to redeem shares at the net asset value each business day. There was a statement made by the company on February 19th. stating that Velissaris had been relieved of his duties effective February 21st.
According to the InvestmentNews, Infinity Q stated that it intends to proceed with a liquidation plan and distribution to shareholders and the plan will be presented to the SEC for approval. As of yet, there is no estimate when the liquidation and distribution will be completed.
This six-year-old fund, is up less than 1% this year, and gained 5.9% last year. The S&P 500 Index is up 3.3% this year and gained more than 16% last year.
If you’ve experienced financial losses in any of the Infinity Q Capital Management LLC (Infinity Q) funds, including, Infinity Q Diversified Alpha Investor Fund (IQDAX), due to the recommendation of your broker/dealer or financial advisor, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.