Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses from esoteric investments like the Infinity Q funds. Although some investment vehicles restrict withdrawals over a certain period of time, it’s a bad sign for investors when redemptions are suddenly halted without any warning. That was the situation recently with the $1.8 billion Infinity Q Diversified Alpha Fund, which shut down redemptions and locked out its founder, James Velissaris.
On Feb. 22, the parent company of the fund – Infinity Q Innovative Investments – “informed investors in the fund that it had received approval from the Securities and Exchange Commission (SEC) to suspend redemptions and postpone the date of redemption payments beyond seven days because it is `unable to value certain assets held in the fund,’” according to Investment News.
The SEC’s order states that “the fund learned on Feb. 18 that Infinity Q chief investment officer and company founder James Velissaris had been tweaking the methodology for counting certain asset valuations, which raised doubts about the accuracy of the reported fair value of those fund holdings.” Infinity Q could not be reached for comment by Investment News. Infinity posted on its website confirming the SEC findings on Feb. 19 stating that “it could not value the assets for purposes of calculating the fund’s net asset value.”