Options for UBS Willow Fund Investors to Recover Losses

Options for UBS Willow Fund Investors to Recover Losses 150 150 Rex Securities Law

By Robert H. Rex, Esq.

Rex Securities Law has been investigating options for investors in the UBS Willow Fund to recover losses on this investment which plummeted in 2012. 
UBS Willow Fund has raised about $500 million dollars since its inception in 2000. A UBS closed-end fund originally formed to invest primarily in distressed debt securities, the UBS Willow Fund abandoned this course of action in 2008 and adopted a new investment strategy, trading credit default swaps that were based on foreign sovereign debt and some private issuers.

These credit default swaps were never referenced in Willow Funds original offering documents and carried risks that were never contemplated nor disclosed to Willow Fund investors. This new strategy violated restrictions in Willow Fund’s offering memorandum related to borrowing and concentration levels.

In October 2012, Willow Fund notified investors that it was liquidating the fund, explaining that the fund manager had incorrectly speculated on credit default swaps on foreign debt which led to a 78% decline in value during the first three quarters of 2012.

In December 2012, a class action (Boudreau vs. UBS Willow Management LLC, et al) was filed in the US District Court for Southern District of NY. The complaint seeks class status for investors suffering losses who purchased or held the investment after January 1, 2008. Class actions tend to be very time consuming and often expensive. In the end investors generally receive a very small percentage of their losses in a class action. 

Investors suffering losses on the UBS Willow Fund should consider filing an individual arbitration with the Financial Industry Regulatory Authority (FINRA). These proceedings generally are much more quickly resolved (generally in about a year vs. several years for class actions)  than class actions and generally provide greater percentage recovery of investor losses. 

In most instances an investor can proceed with arbitration and still participate in any recovery from any pending class action. 

For more information on class actions vs. FINRA arbitration, see our website.

This information is provided by Rex Securities Law, a national securities law firm. We have been helping investors recover stock market losses for more that 25 years. 

If you have questions about losses you have suffered in UBS Willow Fund, please contact us at 561 391 1900 to discuss your legal rights with an experienced securities attorney or complete the Contact Form above. No charge for initial consultation.

Nationwide representation. 

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