Citigroup MAT and Falcon Hedge Funds
From 2005 through 2008, Citigroup marketed its proprietary hedge funds known as ASTA/MAT and Falcon as fixed income alternatives for its broker-dealer’s (Smith Barney) ultra high net worth and high net worth clients. Smith Barney sold the funds as low-to-moderate risk, low-volatility funds and omitted to disclose the extreme risks associated with the investments. Falcon however employed a significant municipal bond arbitrage strategy which became highly leveraged and was substantially invested in risky mortgage related securities and MAT was a risky municipal bond arbitrage fund. Both funds blew up in 2008 causing almost 80% losses.
Rich, Intelisano & Katz, LLP presently represents numerous investors in substantial arbitrations against Smith Barney related to the ASTA/MAT and Falcon hedge funds. Investors’ legal claims include Fraud, Misrepresentations & Omissions, Breach of Fiduciary Duty, Breach of Contract, Unsuitability, Failure to Supervise, and other causes of action.