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Investors Piled Into This Magical Money Machine. Now They’re Stuck.

Eat your broccoli.

That’s the lesson from this week’s stunning shutdown at Infinity Q Diversified Alpha Fund. It is a $1.8 billion mutual fund that looked like a star performer by investing in derivatives meant to buck market trends.

The Securities and Exchange Commission, which regulates mutual funds, is investigating how Infinity Q valued complex assets that were about 18{98cae0078f524eff3ab8ec32cf55b261677ef6c8a6ed6e94d92a4234b93f46b6} of the fund. The agency suspended redemptions on Feb. 22.

That means investors can’t withdraw money until the fund sorts out what its assets are worth. Ultimately, clients could lose 20{98cae0078f524eff3ab8ec32cf55b261677ef6c8a6ed6e94d92a4234b93f46b6} or more of their money, estimates one investor. Infinity

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