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1861 Capital Investigation Continues…

The 1861 Capital funds imploded in February 2008, causing catastrophic losses to investors.

“1861 municipal arbitrage funds were marketed to clients as a fixed income product producing a couple of extra points above municipal bonds,” according to Ryan Bakhtiari. “In truth, the 1861 funds were a high risk leveraged bet subjecting clients to a significant loss of principal.”

“The municipal arbitrage strategy employed was risky and exposed investors to about 2 times more volatility than the S&P 500 and about 7 times more volatility than a traditional portfolio of municipal bonds,” stated Ryan K. Bakhtiari.