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Notice to All Stone & Youngberg Municipal Advantage Fund Investors From the Securities Arbitration Law Firm of Klayman & Toskes

/ Source: GlobeNewswire

NEWPORT BEACH, Calif., Oct. 6, 2010 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A., , announced today that it is investigating potential claims on behalf of investors of the Stone & Youngberg Municipal Advantage Fund I, L.P. ("S&Y Municipal Advantage Fund"). Created in 2006, the S&Y Municipal Advantage Fund was marketed and sold by Stone & Youngberg, LLC, a full-service broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA"), and managed by Stone & Youngberg Asset Management. Our investigation shows that the S&Y Municipal Advantage Fund, a leveraged municipal arbitrage hedge fund, was represented to investors as a safe and secure investment, when in reality it was subject to high risk.   Investors in the Fund have lost 100% of their investment.

Presently, Klayman & Toskes is representing numerous investors who sustained losses in leveraged municipal bond arbitrage hedge funds sold by Wall Street brokerage firms. The municipal bond arbitrage strategy employed by these funds was risky and exposed investors to losing their principal investment. Nonetheless, the funds were represented by brokerage firms to be fixed income products that could provide higher yield, and were touted as being safe and secure investments, not subject to a significant amount of volatility or risk. In reality, however, the arbitrage strategy was a leveraged bet on interest rates, on liquidity, on the value of short call options, and on credit risk. Due to the lack of disclosure and/or misrepresentations concerning the risks of these products, unsuspecting investors who were looking to preserve their capital sustained substantial losses.

Klayman & Toskes is investigating and/or processing claims concerning other leveraged municipal bond arbitrage hedge funds including Citigroup's ASTA/MAT Funds, Aravali Fund, Blue River Asset Management, 1861 Capital Management Funds, Rockwater Hedge Fund, LLC, GEM Capital, and TW Tax Advantaged Fund.  Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.   

If you invested in the S&Y Municipal Advantage Fund, or other municipal bond arbitrage hedge funds, and wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at

CONTACT: Klayman & Toskes, P.A. 888-997-9956