The Goldman Sachs Commodity Strategy Fund Down 31% In 2014
The Goldman Sachs Commodity Strategy Fund, which trades under the ticker symbols GSCAX, GSCCX, GCCRX, GCCTX, and GCCIX, is a non-diversified fund that seeks long-term total return. The fund seeks to maintain economic exposure tied to the commodities markets without direct investment in physical commodities by investing in investment-grade fixed income securities and commodity-linked swaps. The fund may invest up to 10% of its assets in non-investment grade fixed income securities or junk bonds.
The fund has consistently had very poor performance. In 2014, the A-class shares, GSCAX, were down 31.03% for the year, and the 5-year average annual return is negative 7.98%. In addition to poor performance, the fund has an average annual turnover of 266% versus a category average of 128%.
As of September 30, 2014, the fund, managed by Samuel Finkelstein and Michael Johnson, had 18% of its assets in a Goldman Sachs controlled Cayman Islands subsidiary, making it very difficult for individual investors to know the fund’s true holdings.
If your financial advisor or stockbroker recommended that you invest in the Goldman Sachs Commodity Strategy Fund, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in the Goldman Sachs Commodity Strategy 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 Goldman Sachs Commodity Strategy 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.