Modern investment portfolio theory holds that the risk of a substantial decline in a portfolio’s value can be reduced by diversification both within asset classes (i.e., holding stocks in a number of different companies, rather than one company) and over different asset classes (i.e., holding a variety of equities, bonds, cash, real estate, and other investment types). Appropriate asset allocation considers each investor’s circumstances, including net worth, income, financial needs, and age — there is no “one size fits all” approach. Overconcentration or failure to diversify occurs when the investor’s assets (or a large portion of them) are placed into a single investment or investment class (or into a small number of investments or investment classes). Overconcentration or failure to diversify can result in substantial losses that could have been avoided with proper diversification. These losses may be recoverable through a claim for damages.
The investment and securities fraud attorneys at Moulton, Wilson & Arney, LLP have extensive experience representing individual investors in securities arbitration and litigation. Cindy Moulton, Mike Wilson and Lance Arney have successfully represented thousands of clients in securities and investment fraud cases, with combined claims of hundreds of millions of dollars.
If you have suffered an investment loss due to Improper Allocation or Failure to Diversify, you may be entitled to recover all or part of your investment.