Recovery of Dynamic Absolute Return FundInvestment Losses
Have you suffered significant losses while investing in DARF? You’re not alone—and you may have legal options.
The White Law Group, with offices in Seattle, Washington, is currently investigating potential claims involving losses in the Dynamic Absolute Return Fund (DARF). Multiple investors have already retained our law firm to pursue claims related to the fund’s significant decline in value in April 2025.
Such an unexpected and dauntingly sharp drop in value quickly raised red flags across the investment community, especially confused investors who were told that DARF was a low-risk or risk-free investment.
What is DARF?
The Dynamic Absolute Return Fund (DARF) hedge fund is organized as a Delaware limited partnership and managed by Lattice Capital Management LLC, based in Kirkland, Washington. According to a Form D/A filed with the SEC, DARF is classified as a pooled investment fund, specifically a hedge fund, and is not registered under the Investment Company Act of 1940.
Although the fund was positioned as an absolute return strategy (one intended to generate profit for investors regardless of market conditions), as many justifiably angry investors soon learned, DARF has experienced an abrupt and substantial decline.
In many cases, these investors believed they were purchasing a diversified and risk-managed product that wouldn’t incur investment losses. Instead, individuals eager to do more with their money received exposure to a fund that provided little to no transparency. The fallout of this situation has been especially damaging for those with limited income capacity, such as retirees.
Legal Duties of Financial Advisors and Investment Firms
Investment advisers have a fiduciary duty under federal securities laws. This means they are required to:
- Act in their clients’ best interests
- Perform thorough due diligence on all investment products
- Recommend investments suitable for each client’s financial situation
- Fully disclose all material risks and conflicts of interest
When these obligations are not met—such as failing to disclose risks associated with DARF—investors may have legal grounds to seek recovery through a lawsuit or arbitration claim. An example is a broker pushing DARF on you as a low-risk or risk-free investment that ends up leaving you to endure investment losses.
Investment Losses? Contact Us Now for a Free Consultation!
Recovering DARF Investment Losses
If you sustained losses related to the DARF hedge fund, you may be entitled to compensation. The White Law Group is actively representing investors who were affected by the collapse of DARF. We’ve handled hundreds of FINRA arbitration claims on behalf of wronged investors nationwide. Our law firm is proud that we’ve recovered over $55 million for our clients.
Depending on your case, you could be eligible to file a FINRA arbitration claim against the appropriate party (typically a broker-dealer) who sold you DARF. Recovery might be available for those who were victims of an advisor’s failure to disclose risks, negligence, or breach of fiduciary duty.
Your Rights as an Investor
If an advisor or broker misled you to invest in something that didn’t align with your risk tolerance, especially if an adviser-broker withheld an investment’s actual worth, you have the right to seek justice. In these cases, investment losses aren’t due to unfortunate market conditions or sudden and rare events. They’re the result of negligence and misconduct.
Fortunately, wronged investors don’t have to stand by after misconduct occurs. Instead, you can file a claim. Instead, you can file a claim, which can allow you to recover damages that may include your:
- Investment losses
- Out-of-pocket costs
- Missed opportunity costs
- Attorney’s fees
While your legal rights offer a wide range of crucial protections, it is vital to prepare and submit your claim promptly. Claims involving DARF-related financial losses may be subject to a statute of limitations. Once this period passes, you could be unable to pursue legal action and recover your losses.
Free Case Evaluation for Washington Investors
The White Law Group offers free and confidential consultations to investors who have experienced financial losses in the DARF fund. Please call us at 888-637-5510 for a free consultation. If your financial advisor didn’t explain the risks or misrepresented the fund, you could have a viable claim.
Call our Seattle office to discuss your legal options after sustaining DARF-related investment losses or schedule your consultation online today. The White Law Group is currently reviewing claims from investors across Washington and the U.S., especially those who suspect or know they were sold DARF under false pretenses.
Investment Losses? Contact Us Now for a Free Consultation!
FAQs
1. What is the Dynamic Absolute Return Fund (DARF), and why are investors contemplating lawsuits?
This fund, managed by Lattice Capital Management in Kirkland, Washington, appears to have suffered a catastrophic loss. Many investors were allegedly unaware of the high level of risk involved, and some have filed legal claims alleging misrepresentation, lack of risk disclosure, and unsuitable investment recommendations by financial advisors.
Many individuals we speak to report that DARF was pitched to them as a wise investment strategy. Unfortunately, a wave of investors has recently learned their portfolios took major hits due to DARF’s declining financial performance.
2. Can I recover my investment losses from the Dynamic Absolute Return Fund?
Possibly. Suppose your advisor failed to disclose the risks, did not perform due diligence, or recommended DARF despite it being unsuitable for your financial situation. In that case, you may be eligible to recover DARF hedge fund investment losses through FINRA arbitration or other legal avenues. The White Law Group is currently representing investors in Washington and beyond in claims related to DARF.
3. What should I do if I invested in DARF and lost money?
If you experienced investment losses in this fund, you should contact a securities attorney as soon as possible. The White Law Group offers free, confidential consultations to evaluate your potential claim. Time limits may apply, so acting quickly can help preserve your rights and legal recovery options.
Last modified: August 4, 2025
