October 16, 2015
UBS Willow Management L.L.C., UBS Fund Advisor L.L.C.
SANCTION AMOUNT: $17,500,167
Defendants: UBS Willow Management L.L.C., UBS Fund Advisor L.L.C.
Settlement of charges arising from Respondents' alleged roles in failing to disclose a change in investment strategy by a closed-end fund they advised. Specifically, the UBS Willow Fund LLC was marketed as focused on distressed debt, and did so for eight years. Until one day in 2008 when the firm suddenly and with no notice purchased large quantities of credit default swaps (a polar opposite strategy from the previous) (and one that went poorly, with the fund liquidating in 2012).
- Key Docs
- Official SEC press release