a us mutual fund that suffered nearly 500 million of losses appears to have misvalued its large derivatives portfolio according to an analysis of the fund’s disclosures by the wall street journal academics and traders the infinity q diversified alpha fund disclosed in filings with the securities and exchange commission valuations of investments that in at least three instances were incorrect or inconsistent with market conditions said traders and academics one valuation was mathematically impossible said a former morgan stanley managing director who reviewed the disclosures