Gana Weinstein LLP is investigating the LJM Preservation and Growth Fund (Ticker Symbols LJMAZ, LJMCX, LIMIX). The LJM Funds relied extensively on a strategy that is designed to profit from calm markets. The LJM Preservation and Growth Funds collapsed and lost more than 80% of its value as a result of last week’s market volatility. The combonation of LJMAZ, LJMCX and LIMIX at one point collectively held over $800 million in assets CNC reached out to Chicago-based LJM Partners, Inc. – the funds managers, and no comment was made.
According to its annual report to shareholders, LJM explained that it options “to deliver solid returns while maintaining risk parameters.” LJM also suggested that it used techniques to mitigate losses in extreme market conditions. The fund was designed to take advantage of the spread between realized and implied volatility. According to CNBC, “LJM Preservation and Growth Fund had been run by Anthony Caine, a veteran of the 1990s technology boom who later founded LJM, and Anish Parvataneni, a former trader for well-known investor Ken Griffin’s Citadel.”
According to reports, LJM was infused with almost $400 million in new capital in 2017 alone.