ENGLEWOOD CLIFFS, N.J., Oct. 28, 2013 (GLOBE NEWSWIRE) -- Gardy & Notis, LLP, a national law firm advocating for shareholder rights, is investigating Morgan Stanley Smith Barney Holdings LLC ("Morgan Stanley") and its wholly-owned subsidiary Ceres Managed Futures LLC ("Ceres") to determine whether Morgan Stanley and Ceres charged excessive fees to customers who invested in their futures funds.
According to an October 7, 2013 Bloomberg article, "How Investors Lose 89 Percent of Gains from Futures Funds," "89 percent of the $11.51 billion of gains in 63 managed-futures funds went to fees, commissions and expenses during the decade from Jan. 1, 2003, to Dec. 31, 2012." Many managed-futures funds often charge investors management fees of 7% to 9% of the value of assets invested annually plus 20% of investor profits. These fees can turn a gain into a loss.
For example, more than 30,000 people invested approximately $797 million in Morgan Stanley's managed-futures fund called Morgan Stanley Smith Barney Spectrum Technical L.P. From 2002 through 2012, the fund made approximately $490 million in trading gains and interest income. However, investors ended up losing money because those profits were depleted by over $498 million in commissions, expenses and fees paid to fund managers and Morgan Stanley. Despite the fund's value increase of approximately $490 million, investors ended up losing approximately $8 million over the course of those 10 years.
The Firm is investigating the following funds: (1) Morgan Stanley Smith Barney Spectrum Strategic L.P.; (2) Morgan Stanley Smith Barney Spectrum Technical L.P.; (3) Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P.; (4) Morgan Stanley Smith Barney Spectrum Global Balanced L.P.; (5) Morgan Stanley Smith Barney Spectrum Strategic L.P.; (6) Morgan Stanley Smith Barney Spectrum Select L.P.; (7) Polaris Futures Fund L.P.; (8) Meritage Futures Fund L.P.; (9) LV Futures Fund L.P.; (10) Managed Futures Premier BHM, L.P.; (11) Managed Futures Premier Graham L.P.; (12) Managed Futures Premier Aventis II L.P.; and (13) Managed Futures Premier Warrington L.P.
If you invested in any of Morgan Stanley's futures funds and would like to discuss your legal rights, call Mark Gardy or Charles Germershausen at 201-567-7377 or e-mail mgardy@gardylaw.com or cgermershausen@gardylaw.com . Gardy & Notis, LLP also encourages anyone with information regarding Morgan Stanley's or Ceres's conduct to contact the firm, including whistleblowers, former employees, and others.
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CONTACT: Gardy & Notis, LLP Mark Gardy Charles Germershausen 201-567-7377 mgardy@gardylaw.com cgermershausen@gardylaw.com
