Stoltmann Law Offices is interested in speaking to those investors who may have invested with Merrill Lynch in the fund MLCXX6LSER Index (MLC Index). Craig Kinard, a Merrill Lynch adviser, was accused of making MLC Index recommendations and sales. MLC Index is allegedly one of the most complex investment products that could be sold to a retail investor, and, therefore, is suitable to few investors. The Index involved extreme leverage, commodities, derivatives, options and swaps risk. The MLC Index proved to be too great of a challenge for brokers and customers to understand, and many customers lost money. Also, the Index was subject to enormous costs and fees. Merrill Lynch advertised the Index as having “Low Volatility” and producing “Consistent Returns” to investors and that it provided back testing data showing that the fund would have an annualized return of 6.77% and that from 2002 until 2011 the fund did not have a single negative return year. Merrill Lynch failed to properly explain and disclose the main risks to arbitrage funds in that the hedging strategy, or the correlation assumptions, will not prove accurate. The Fund was volatile. If you lost money with the MLC Fund and Merrill Lynch, please call our securities law firm today to speak to an attorney about your options. The call is free with no obligation. We may be able to help you recover your losses.
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