Investment firm Infinity Q Capital Management LLC has halted investor redemptions following the discovery of potentially serious valuation issues. According to a recent article published in the Wall Street Journal, the firm’s Chief Investment Officer has been banned from trading following discovery of potential misconduct relating to valuation of the firm’s net asset value (NAV). The New York City-based firm, which has about $3 billion in assets under management, requested that the Securities and Exchange Commission suspend redemptions.
Investors in two of Infinity Q’s funds, Infinity Q Diversified Alpha Fund Institutional Class (NASDAQ: IQDNX) and Infinity Q Diversified Alpha Fund Investor Class (NASDAQ: IQDAX), have become increasingly concerned after this information was disclosed, as it may reflect serious issues with the value of their investments in Infinity Q’s funds.
SEC Orders Suspension Of Investor Redemptions
On February 22, 2021, the SEC released an order temporarily suspending redemptions until the fund liquidates or the SEC rescinds the suspension. According to the SEC’s order:
- The request for relief arises from Infinity Q’s inability . . . to value certain Fund holdings and the Fund’s resulting inability to calculate net asset value (NAV).
- The Fund . . . would not be able to calculate a fair value . . . in sufficient time to calculate an accurate NAV for at least several days.
Infinity Q requested that the SEC permit it to further investigate these issues and begin the process of liquidating the fund for return to investors. Unfortunately, due to these potential errors in NAV calculation, it is unknown how much investors will receive upon liquidation or when investors may be able to redeem their investments.
Wall Street Journal Reports Potentially Serious Misconduct
A story published in the Wall Street Journal on February 23, 2021 notes that the SEC recently informed Infinity Q that it had evidence that Infinity Q’s Chief Investment Officer “had been adjusting parameters of pricing models that were used to value derivatives in the fund’s portfolio.” According to the article, this resulted in incorrect valuations likely being reported to investors.
Silver Law Group Investigating Potential Misconduct At Infinity Q
Silver Law Group, a national investment and financial fraud firm, is investigating potential causes of action that could be brought on behalf of Infinity Q shareholders. This includes potential class action claims and/or individual claims arising from Infinity Q’s failure to disclose material information and/or disclosure of false or misleading information about the funds. Based on the recent news, it is likely that IQDNX and IQDAX investors will suffer losses on their investments.
If You Invested In An Infinity Q Fund, Contact Silver Law Group
Silver Law Group is a nationally recognized securities and investment law firm headquartered in South Florida representing investors worldwide with claims for losses due to securities and investment fraud. Silver Law Group has successfully recovered multi-million-dollar awards for its clients through securities arbitration as well as class actions. To contact Silver Law Group to discuss problems with Infinity Q, Infinity Q Diversified Alpha Fund Institutional Class (NASDAQ: IQDNX), and/or Infinity Q Diversified Alpha Fund Investor Class (NASDAQ: IQDAX), call toll-free (800) 975-4345 or email firstname.lastname@example.org.