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Zamansky LLC Investigates UBS Financial Services’ Sales of the AlphaKeys KKR Energy Income Fund.
We are investigating UBS Financial Services Inc. (UBS) over sales of the AlphaKeys KKR Energy Income Fund to its brokerage customers. The AlphaKeys KKR Energy Income Fund is a “feeder” private equity or hedge fund established to invest in the KKR Energy Income Fund, another private equity or hedge fund. UBS sold approximately $331 million of interests in the AlphaKeys KKR Energy Fund to its brokerage customers.
During Summer 2013, the KKR Energy Income Fund sold $2 billion to investors. UBS’s sales of the AlphaKeys KKR Energy Fund were an important source of KKR’s demand. The KKR Energy Fund was launched to invest in several horizontal drilling exploration deals. With the crash in oil prices, these types of exploration projects are likely doomed.
The UBS AlphaKeys KKR Energy Fund was a high risk and speculative investment. According to Jake Zamansky, the AlphaKeys KKR Energy Fund was not suitable for investors with conservative or even moderate investment objectives. Retirees or other conservative investors who needed to protect their principal or earn income should not have invested in the UBS AlphaKeys KKR Energy Fund.
Oil prices have always fluctuated widely and often unpredictably. The volatility of oil and natural gas has wiped out many hedge funds and professional investors in the past, such as the Amaranth Advisors hedge funds which lost $6 billion in 2006.
If you invested in the UBS AlphaKeys KKR Energy Fund because you were told that it was suitable or a moderate risk investment, you may have the legal right to bring a claim for unsuitability, fraud or sales practice violations to recover your losses.