Hedge Fund Risk Disclosure|
CERTAIN RISKS OF HEDGE FUND INVESTING
Privately offered investment vehicles commonly called hedge funds ("Hedge
Funds," which include fund of funds) are unregistered private investment
funds or pools that 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. By accessing this web site, you acknowledge the following:
This summary of certain risks is not a complete list of the risks and
other important disclosures involved in investing in a Hedge Fund and is subject
to the more complete disclosures contained in a specific Hedge Fund's respective
offering documents, which must be reviewed carefully. A Hedge Fund's past
performance is no guarantee of its future performance.
- 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.
- Any investment in Hedge Funds 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
- Hedge Funds may be leveraged (including highly leveraged) and a Hedge
Fund's performance may be volatile.
- Some Hedge Funds 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
- A Hedge Fund's manager or advisor has total trading authority over the
- Some Hedge Funds may use a single advisor or employ a single strategy,
which could mean a lack of diversification and higher risk.
- Some Hedge Funds (for example, fund of funds) and their managers or
advisors rely on the trading expertise and experience of third-party
managers or advisors, the identity of which may not be disclosed to
- Some Hedge Funds may involve complex tax structures, which should be
- Some Hedge Funds may involve structures or strategies that may cause
delays in important tax information being sent to investors.
- Hedge Funds are not required to provide periodic pricing or valuation
information to investors.
- Some Hedge Funds may provide no transparency regarding its underlying
investments to investors.
- Some Hedge Funds may execute a substantial portion of trades on foreign
exchanges, which could mean higher risk.
- 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's fees and expenses which may be substantial regardless of
any positive return will offset the Hedge Fund's trading profits.
- Hedge Funds and their managers/advisors may be subject to various
conflicts of interest.