Investigating David Lerner’s Spirit of America Fund

Vernon Litigation is investigating claims on behalf of investors that were sold David Lerner’s Spirit of America Fund (Symbol SOAEX). According to fund disclosures, as of May 2015, over 90% of the fund was invested in energy related investment and Master Limited Partnerships (MLP’s). The fund, unfortunately, pays a portion of the income using investor capital. Despite a recent surge in energy prices, SOAEX has declined substantially. In 2018 the fund cut the dividend and had a reverse split to try and boost the fund’s price and curb redemptions. Investors in the fund are now exposed to substantial risks relating to the price of energy and continuous liquidations.

What To Do If You Hold A Concentrated Position In The Fund

If you hold a concentrated position in the fund you may not be adequately diversified and may be exposed to greater risks than a well-balanced portfolio.  Diversification means creating an investment portfolio that contains different types of investments within each of the different industry sectors. A well-diversified portfolio is invested in each of the different industry sectors (i.e., healthcare, financials, industrial, technology, utilities, energy, manufacturing, telecommunications and the like) commensurate with the investor’s risk tolerance. Industry sectors tend to move up and down at different times and at different rates. Investing a portfolio across each of the industry sectors reduces risk and, in some cases, can even increase return. Diversifying a portfolio, therefore, across the industry sectors is typically a significant factor in the long-term success of a portfolio.

If you have incurred substantial realized or unrealized losses due to a concentration in the Spirit of America Fund, you may have a claim for damages.   Please contact one of our securities attorneys to discuss your rights:

Vernon Litigation Group

Phone: (239) 319-4434