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Have You Heard The Saying "Don't Put All Your Eggs In One Basket"?

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Home  Broker Misconduct  Concentration

Concentration can take many forms. Your portfolio can be concentrated in a particular industry, sector or security. A cornerstone of sound investing is diversification. When your investments are overly concentrated, this leads to undue risk.

If an investor desires to concentrate his investments in a single security or sector with full knowledge of the risks, then this strategy, although speculative, may not be unsuitable. However, unwitting investors all too often end up having their portfolios unsuitably concentrated in a particular security or sector without knowledge of the risk.

An unscrupulous investment adviser may concentrate your investments in order to steer your money into products that generate high commissions and fees. Another reason for engaging in this practice is sell a product that the firm is pushing in order to reduce the firm’s proprietary position in a particular security, and shift the risk of holding the security from the firm to the firm’s clients.

Our firm has recouped millions of dollars on behalf of investors whose savings were inappropriately concentrated in limited partnerships, CMOs, closed-end funds (“CEFs”) and other investments. We recently received an $18,000,000-plus award after trial against UBS in Puerto Rico involving concentration of an individual’s portfolio in CEFs.

Contact An Experienced Attorney If You Suspect Unsuitable Concentration

Beginning with the Prudential Limited Partnership scam in the early 1990s though the current CEF scandal in Puerto Rico, Timothy J. Dennin has recouped millions of dollars for investors whose portfolios were inappropriately concentrated in proprietary products pushed by investment firms and unscrupulous investment advisers. For decades, Mr. Dennin has received nationwide recognition as a result of the compensation obtained on behalf of investors whose portfolios have been unsuitably concentrated. An investor whose portfolio has been inappropriately concentrated should speak with an experienced attorney with a proven track record. Call 866-437-9475 or use our online contact form.