Securities Litigation and Consulting Group, Inc. Releases UBS's Yield Enhancement Strategy ("YES") Returns - and then the Losses - Were Caused by Equity Market Exposure

WASHINGTON, Oct. 3, 2019 /PRNewswire/ --  Securities Litigation and Consulting Group, Inc. ("SLCG") has issued a report on losses incurred in accounts subjected to UBS's YES options overlay strategy.

The report is available at www.slcg.com/pdf/workingpapers/McCann%20Meng%20and%20ONeal%20on%20UBS%20YES.pdf.

SLCG's report finds that UBS did not implement the symmetric, market-neutral "Iron Condor" strategy it marketed but instead heavily traded options to take large bets on short term movements in the stock market. According to the SLCG report, YES accounts lost 10% to 14% in December 2018 as a result of this market neutral strategy.

One of the authors, Craig McCann, states "There should be Hall of Fame for advisors who claim to have found a market-neutral strategy which generates steady low-risk returns but ultimately generated large losses as a result of modest market movements."

McCann goes on to say, "Options can be used to place long or short bets on the market. They can be used to hedge risk or magnify risk but contrary to some advocates there is no options alchemy which can systematically generate above market returns with below market risk."

Securities Litigation and Consulting Group, Inc. ("SLCG") is a financial economics consulting firm based in the Virginia suburbs outside of Washington, DC.

SLCG provides consulting services and expert witnesses to law firms, corporations, regulators and individuals throughout the United States. SLCG's staff includes PhD, MA and BA level professionals with academic, industry and government experience. Its experts have testified in state and federal courts and in various arbitration forums. For further information about SLCG or its research, please contact Dr. Craig McCann at 703- 246-9381, [email protected] or visit us at http://www.slcg.com.

SOURCE Securities Litigation and Consulting Group, Inc.

Related Links

http://www.slcg.com

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