Recovery of AllianzGI Structured Alpha Losses


Many of AllianzGI’s “Structured Alpha” funds have suffered catastrophic losses this year, according to reports. Morgan & Morgan’s experienced securities attorneys are investigating claims involving losses in these Structured Alpha funds.

In early 2020, AllianzGI allegedly told investors that its Structured Alpha US Equity 500 hedge fund was positioned well if an extreme correction occurred or volatility spiked, according to reports. However, when equity markets crashed in February and March, AllianzGI allegedly failed to properly re-balance, hedge positions, or reduce leverage.

AllianzGI’s alleged failure to take protective measures left the fund exposed to major losses, and the fund had incurred losses of more than 75% by late March.

Because AllianzGI only earned fees if the fund out-performed the S&P 500, the firm’s failure to protect investors allegedly may have been due to the fund’s fee structure. It’s possible the firm could have protected investors against a market correction earlier this year, however it would have had to lock in small losses to do so. And, incurring losses may have meant that AllianzGI would not have been entitled to fees.

Rather than pay for protective measures, AllianzGI allegedly hoped markets would simply turn in the fund’s favor without having to pay for measures to reduce risk exposure.

AllianzGI’s parent company, Allianz SE, disclosed that the SEC had recently sent an information request regarding the Structured Alpha funds.

If you have suffered losses relating to AllianzGI’s Structured Alpha funds, our attorneys may be able to help. As part of the largest contingency law firm in the nation, the securities attorneys in the Business Trial Group have the resources to take on the brokerage firms, investment advisory firms, and banks that caused your investment losses. We have helped investors recover tens of millions of dollars of investment losses.

The Business Trial Group helps investors recover their losses on a contingency basis, which means no hourly or upfront fees. We are only paid if we successfully recover money for you.

Contact us today for a free case evaluation.