MainStay Cushing Royalty Energy Income Fund Down 40% In 2014
The MainStay Cushing Royalty Energy Income Fund, which trades under the ticker symbols CURAX, CURNX, CURCX, and CURZX, offered by New York Life Investment Management LLC, is a non-diversified fund that seeks to produce income and capital appreciation by investing in North American oil and natural gas companies. The fund seeks to invest at least 80% of its assets in energy related exploration and production (E&P) trusts, master limited partnerships (MLPs), and common stocks. Additionally, the fund may use leveraged borrowings for investment purposes.
In 2014, the A-class shares, CURAX, were down 40.42% for the year. In addition to poor performance, the fund has high fees (2%) versus the category average of 1.5%.
As of September 30, 2014, the fund, managed by Jerry Swank, Daniel Spears, and Judd Cryer, had 8.23% of its assets invested in Linn Energy LLC (NASDAQ: LINE) and 8.02% of its assets invested in Legacy Reserves LP (NASDAQ: LGCY), both highly leveraged oil and natural gas MLPs, amongst a concentrated portfolio of only 27 companies.
If your financial advisor or stockbroker recommended that you invest in the MainStay Cushing Royalty Energy Income Fund, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in the MainStay Cushing Royalty Energy Income Fund, then you may have a claim for misrepresentation. If your investment objective was to only invest in safe and stable investments, you may have a claim for unsuitability. If the MainStay Cushing Royalty Energy Income Fund made up a large portion of your portfolio, then you may have a claim for over-concentration and lack of diversification. If your advisor purchased this fund without your knowledge, you may have a claim for unauthorized trading. If your advisor purchased this fund on margin, you may have a claim for excessive use of margin and negligence.
The attorneys at Carlson & Associates, P.A., located in Miami, Florida, represent investors who have lost money due to the improper conduct of financial advisors. If you would like to have a free consultation, we can be reached at (305) 372-9700 to discuss your options.