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HEDGE
FUND RISK AND OTHER DISCLOSURES:
Hedge funds, including
fund of funds (“Hedge Funds”), are unregistered private investment
partnerships, funds or pools that may invest and trade in many
different markets, strategies and instruments (including securities,
non-securities and derivatives) and are NOT subject to the same
regulatory requirements as mutual funds, including mutual fund
requirements to provide certain periodic and standardized pricing and
valuation information to investors. There are substantial risks in
investing in Hedge Funds. Persons interested in investing in Hedge
Funds should carefully note the following:
Hedge Funds represent speculative
investments and involve a high degree of risk. An investor could lose
all or a substantial portion of his/her investment. Investors must
have the financial ability, sophistication/experience and willingness
to bear the risks of an investment in a Hedge Fund.
An investment in a Hedge Fund should
be discretionary capital set aside strictly for speculative purposes.
An investment in a Hedge Fund is not
suitable or desirable for all investors. Only qualified eligible
investors may invest in Hedge Funds.
Hedge Fund offering documents are not
reviewed or approved by federal or state regulators
Hedge Funds may be leveraged
(including highly leveraged) and a Hedge Fund’s performance may be
volatile
An investment in a Hedge Fund may be
illiquid and there may be significant restrictions on transferring
interests in a Hedge Fund. There is no secondary market for an
investor’s investment in a Hedge Fund and none is expected to
develop.
A Hedge Fund may have little or no
operating history or performance and may use hypothetical or pro forma
performance which may not reflect actual trading done by the manager
or advisor and should be reviewed carefully. Investors should not
place undue reliance on hypothetical or pro forma performance.
A Hedge Fund’s manager or advisor
has total trading authority over the Hedge Fund.
A Hedge Fund may use a single advisor
or employ a single strategy, which could mean a lack of
diversification and higher risk.
A Hedge Fund (for example, a fund of
funds) and its managers or advisors may rely on the trading expertise
and experience of third-party managers or advisors, the identity of
which may not be disclosed to investors
A Hedge Fund may involve a complex tax
structure, which should be reviewed carefully.
A Hedge Fund may involve structures or
strategies that may cause delays in important tax information being
sent to investors.
A Hedge Fund may provide no
transparency regarding its underlying investments (including sub-funds
in a fund of funds structure) to investors. If this is the case, there
will be no way for an investor to monitor the specific investments
made by the Hedge Fund or, in a fund of funds structure, to know
whether the sub-fund investments are consistent with the Hedge
Fund’s investment strategy or risk levels.
A Hedge Fund may execute a substantial
portion of trades on foreign exchanges or over-the-counter markets,
which could mean higher risk.
A Hedge Fund’s fees and
expenses-which may be substantial regardless of any positive return-
will offset the Hedge Fund’s trading profits. In a fund of funds or
similar structure, fees are generally charged at the fund as well as
the sub-fund levels; therefore fees charged investors will be higher
that those charged if the investor invested directly in the sub-fund(s).
Hedge Funds are not required to
provide periodic pricing or valuation information to investors.
Hedge Funds and their
managers/advisors may be subject to various conflicts of interest.
The above general summary is not a
complete list of the risks and other important disclosures involved in
investing in Hedge Funds and, with respect to any particular Hedge Fund,
is subject to the more complete and specific disclosures contained in such
Hedge Fund’s respective offering documents. Before making any
investment, an investor should thoroughly review a Hedge Fund’s offering
documents with the investor’s financial, legal and tax advisor to
determine whether an investment in the Hedge Fund is suitable for the
investor in light of the investor’s investment objectives, financial
circumstances and tax situation.
All performance information is believed to be net of applicable fees
unless otherwise specifically noted. No representation is made that any
fund will or is likely to achieve its objectives or that any investor will
or is likely to achieve results comparable to those shown or will make any
profit at all or will be able to avoid incurring substantial losses. Past
performance is not necessarily indicative, and is no guarantee, of future
results.
The information on the Site is intended for informational, educational and
research purposes only. Nothing on this Site is intended to be, nor should
it be construed or used as, financial, legal, tax or investment advice, be
an opinion of the appropriateness or suitability of an investment, or
intended to be an offer, or the solicitation of any offer, to buy or sell
any security or an endorsement or inducement to invest with any fund or
fund manager. No such offer or solicitation may be made prior to the
delivery of appropriate offering documents to qualified investors. Before
making any investment, you should thoroughly review the particular
fund’s confidential offering documents with your financial, legal and
tax advisor and conduct such due diligence as you (and they) deem
appropriate. We do not provide investment advice and no information or
material on the Site is to be relied upon for the purpose of making
investment or other decisions. Accordingly, we assume no responsibility or
liability for a ny investment decisions or advice, treatment, or services
rendered by any investor or any person or entity mentioned, featured on or
linked to the Site.
The information on this Site is as of the date(s) indicated, is not a
complete description of any fund, and is subject to the more complete
disclosures and terms and conditions contained in a particular fund's
offering documents, which may be obtained directly from the fund. Certain
of the information, including investment returns, valuations, fund targets
and strategies, has been supplied by the funds or their agents, and other
third parties, and although believed to be reliable, has not been
independently verified and its completeness and accuracy cannot be
guaranteed. No warranty, express or implied, representation or guarantee
is made as to the accuracy, validity, timeliness, completeness or
suitability of this information.
Any indices and other financial benchmarks shown are provided for
illustrative purposes only, are unmanaged, reflect reinvestment of income
and dividends and do not reflect the impact of advisory fees. Investors
cannot invest directly in an index. Comparisons to indexes have
limitations because indexes have volatility and other material
characteristics that may differ from a particular hedge fund. For example,
a hedge fund may typically hold substantially fewer securities than are
contained in an index. Indices also may contain securities or types of
securities that are not comparable to those traded by a hedge fund.
Therefore, a hedge fund’s performance may differ substantially from the
performance of an index. Because of these differences, indexes should not
be relied upon as an accurate measure of comparison.
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