The United States Gasoline Fund (UGA) Down 43% in 2014

Global oil prices were weak throughout 2014 due to concerns over weak demand as well as a stronger US Dollar. In December alone, the price of crude oil in the US fell by 21.3%, and finished the year down more than 55% since June. Gasoline is a byproduct of crude oil, generally with similar price trends, but on a two-week lag.

The United States Gasoline Fund, LP (NYSEArca: UGA) is a commodity pool that issues tradable limited partnership units (as opposed to shares of common stock). The fund seeks to invest in futures contracts and gasoline related investments in order to reflect the spot price for the nearest month’s delivery of gasoline in the United States. In 2014, UGA was down 43.02% for the year.

In addition to the complex investment structure, limited partnerships are taxed with a K-1 form instead of the standard 1099 form used for investments, which can complicate your tax preparation.

If your financial advisor or stockbroker recommended that you invest in the United States Gasoline Fund, LP, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in United States Gasoline Fund, LP, 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 United States Gasoline Fund, LP 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.