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Fisher Investments Losses
An arbitrator recently awarded a plaintiff more than $300,000 in an arbitration filed against Fisher Investments. Since that time, clients have come forward with their own Fisher Investments complaints. Among the complaints about the Fisher Investments portfolio is that the company does not tailor investments to individual investors' needs.
Clients of Fisher Investments have come forward alleging the investment firm failed in its duties to its clients. Among the complaints are that clients were told their portfolios would be tailored to their specific needs—taking into account their risk tolerance and financial situation—when in fact many clients say their account was almost exclusively invested in equity portfolios (i.e., they allege their Fisher investment portfolio was too heavily invested in stocks and not balanced according to their financial needs). Those almost-exclusively equity portfolios were reportedly set up for most customers, regardless of their individual needs.
Fisher Investments Complaints
Individual differences in accounts reportedly involve which sectors of the equity markets the account is focused on, but most, if not all, customers who have come forward have allegedly had their funds invested in equities, including the Purisima Total Return fund.
For an average investor, having almost 100 percent of a portfolio invested in equities can be problematic; if the market drops, it can take a long time to recover losses. For investors who are at or near retirement age, however, a portfolio consisting almost exclusively of equities--that is, a portfolio weighted heavily or mostly in stocks as opposed to having a more balanced or age-appropriate portfolio that includes fixed-income assets and cash or cash equivalents--can be a disaster. Retirees who require investments to provide money to live off and who would normally seek a portfolio that is based on life span asset allocation can suffer devastating stock losses in a bad market.
In other words, the complaints concerning Fisher Investments comprised the following two allegations: that individuals are told they will have a portfolio tailored to their needs and risk tolerance when it is alleged that almost everyone gets the same portfolio; and for many investors having an account that is 100 percent (or almost 100 percent) in equity portfolios is too risky for their needs and risk tolerance.
Failure to tailor an investment portfolio to an individual's needs was at the heart of an arbitration filed by Sharyn Silverstein against Fisher Investments. An arbitrator found in favor of Silverstein, awarding her more than $300,000. The JAMS arbitrator, Karen Willcutts, wrote in her decision, "Fisher failed to make reasonable inquiry into [plaintiff's] financial situation, investment experience, and investment objectives or ignored that information. Instead of tailoring its recommendation to [plaintiff's] circumstances and needs, as it promised to do and had a duty to do, Fisher simply made the same recommendation to [plaintiff] that it makes to the vast majority of its clients: 100 percent equities benchmarked to the MSCI World (MXWO) Index.”
Fisher Investments Arbitration
Fisher Investments Inc is a California-based company with more than 25,000 clients. It is run by Forbes Magazine columnist Kenneth Fisher and claims to manage more than $41 billion for almost 40,000 accounts.
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Last updated on Sep-16-11
FISHER INVESTMENTS LEGAL ARTICLES AND INTERVIEWS
Fisher Investments Has Seen Previous Arbitrations
Atlanta, GA: A recent arbitration decision against Fisher Investments is reportedly not the first time JAMS arbitration has heard Fisher Investments complaints. At least two other actions concerning Fisher Investments performance have been filed against the firm in recent years, alleging the company put too much of an investor's account in equities, which resulted in massive losses when the market collapsed [READ MORE]
All This, Just for a Free Book: Fisher Investments
Woodside, CA: While the enterprise at the center of an investment controversy holds that "losing an arbitration once every seven years is a record far better than any major competitor," the alleged disconnect between the stated wishes of the investor and Fisher Investments, the firm to which the investor entrusted her cash, leaves one asking the proverbial question, "whose money is it anyway? [READ MORE]
Fisher Investments "Never Took Action" On Losses
Hoffman Estates, IL: Fisher Investments lost an arbitration against Sharyn Silverstein, who alleged in her Fisher Investments complaint that the company did not act in her best interest. Now, other customers, like Bob Hall, are coming forward, to say that they, too, lost money as a result of lower than expected Fisher Investments performance, and that representatives of Fisher Investments did not listen to their concerns [READ MORE]
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In 2014 the S&P, NASDAQ and DOW average performance was a tad under 12%. The average portfolio in Fisher investments was up 3.9%. At a recent client seminar, a Fisher portfolio analyst and a vice president each confirmed the disparity and claimed Fisher expects his MSCI benchmark to fare much better than domestic investments in 2015.
I've read that Fisher has more than 25,000 clients and manages over $41 billion. Unless his prediction becomes a reality, he's going to lose at least one client and manage a little less than $41 billion. I can't help but wonder if he has MY best interest in mind, like his TV ad promises.
I joined fisher investment may of 2007....it was their 3rd try at getting my business and they sent 2 super aggressive sales folks.. they too kaway all that I had signed with a promise to send me copies.. 6 weeks later I called them a couple of times asking for copies of all I had signed and then my male friend called them and ordered them to send the paperwork.. I also was promised a personalized portfolio but what fisher gives his clients is a cookie cutter unregulated mutual fund portfolio.. he sold off most of the blue chip stock portfolio I had given him and purchased at top dollar all of the banks and financial firms,foreign companies, pink sheet stocks, and lots of Japanese stocks all at the top of the market of 2007.he even purchased some of the same stocks I had originally given to him a few weeks later but at a much higher price.. my portfolio still has not recovered and 1/3 of that portfolio was a roth ira.. I often asked the hand holder who was assigned to me if fisher had no fiduciary duty to me. I found later that investment advisors are not required by law to have fiduciary duty to their clients. the lobbying group that represents investment advisors in wash d.c. make sure that no law will ever be passed that requires them to have fiduciary duties to their clients. fisher threatened to sue me because I had a blog published in forbes magazine about his wrecking my roth ira..why would any advisor worth his salt ever put foreign stocks into a roth ira? I guess he was so busy churning my acct that he thought I would never receive a dividend from a foreign stock where the foreign company creams off 15 to 30% in foreign taxes which roth ira holders cannot recoup ever. he sold off my g.e. stock at the 30 dollar range then bought it back at 45.00 a short time later g.e. will never again be at 45.00 at least in my lifetime. he sued one of his clients who blew the whistle on him and when I sent him a letter removing his discretionary powers--he sent me a letter of non-renewal of my contract for the up coming year citing my complaints about the stock picking,the forbes blog and threatened to sue me if I did not shut up. he also claimed he had made me money.. I still do not have back what I gave him although I put everything I could into dividend reinvestment and held on because you cannot deduct loss from a roth ira.. it would have been a total loss.. he really put a lot of bad stocks into the account I had entrusted him to manage for me.. in fact--he made more money on my account than I did. caveat emptor
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