Savvy family offices understand the importance of conducting extensive high-level due diligence. Sometimes, however, a popular investment strategy offered by a large investment firm can be difficult to identify and flag as a bad investment idea.
Such is the case with the yield enhancement strategy also known as the YES strategy. The definition of a yield enhancement strategy is an investment option where a broker sells call or put options to enhance returns in relatively stable or flat markets. While the yield enhancement strategy is often pitched as a safe or stable option for consistent returns, the reality is that the investment products bought and sold under YES strategies are extremely complex and risky. In December, unexpected market volatility led to substantial losses and many family office investors in UBS iron condors and similar YES strategies were negatively affected.
Jacob (Jake) H. Zamansky is one of the country's foremost authorities on securities litigation and arbitration. Zamansky LLC, the New York-based law firm he founded, is a trend-setting firm which represents investors in cases against their financial advisors for fraud and unsuitable investment recommendations. The firm has been at the forefront of efforts to clean up Wall Street and have won game changing cases in which investors have recovered their losses resulting from stockbroker and investment fraud. Zamansky has decades of experience as a securities litigator, including working at Skadden Arps, Slate, Meagher and Flom LLP. He also served as a federal prosecutor with the Federal Trade Commission.
A native of Philadelphia, Mr. Zamansky has been a frequent expert commentator on CNBC, CNN, and FOX News and has published opinion pieces in The Wall Street Journal, Financial Times and USA Today. He is regularly quoted and his cases have been chronicled in major financial and news publications including The New York Times, USA Today, Washington Post, BusinessWeek, Fortune and Forbes. He is a frequent lecturer for industry and legal groups around the Country. He also writes a blog that can be viewed at www.zamansky.blogspot.com.