Additional disclosure: Gator Capital Management, LLC prepared this letter. Ultimus LeverPoint Fund Solutions, LLC, our administrator, is responsible for the distribution of this information and not for its content.
General Disclaimer
By accepting this investment letter, you agree not to disclose the information it contains to any other party. This letter and its contents are confidential and proprietary information of the Fund, and any reproduction of this information, in whole or in part, without the prior written consent of the Fund is prohibited.
The information in this letter reflects the opinions and projections of Gator Capital Management, LLC (the “General Partner”) and its affiliates as of the date of publication, which are subject to change without notice at any time after publication. date of issue. . All information provided is for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any specific security.
All performance results are based on the net asset value of the Fund. Net performance results are presented net of management fees, brokerage commissions, administrative expenses and the cumulative performance allowance, as indicated, and include the reinvestment of all dividends, interest and capital gains. Performance results represent Fund-level returns and are not an estimate of the actual performance of any specific investor, which may differ materially from such performance depending on many factors.
The market indices shown in this letter have been selected for the purpose of comparing the performance of an investment in the Fund with certain well-known equity benchmark indices. Statistical data for the indices was obtained from Bloomberg and returns are calculated assuming all dividends are reinvested. The indices are not subject to any of the fees or expenses to which the funds are subject and may involve significantly less risk than the Fund. The Fund is not limited to investing in the securities that make up these indices, its performance may or may not be correlated to these indices, and it should not be considered as an approximation of these indices. The S&P 500 Total Return Index is a market capitalization-weighted index of 500 widely held stocks, often used as an indicator of the overall US stock market. The S&P 1500 Financials Index is a market capitalization-weighted index of financial stocks within the S&P 1500 Super Composite Index that we have used as a proxy for the financial sector of the US stock market. An investment cannot be made directly in either index. The Fund is composed of securities which deviate significantly from those of the benchmark indices listed above. Therefore, comparing the results presented to those of these indices may be of limited use.
Statements contained herein that reflect projections or expectations regarding the future financial or economic performance of the Fund are forward-looking statements. These “forward-looking” statements are based on various assumptions, which assumptions may prove to be incorrect. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or the actual performance of the Fund. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be correct. All forward-looking projections and statements included herein should be considered speculative and are qualified in their entirety by the information and risks disclosed in the Fund’s private placement memorandum. Actual results for any period may or may not approximate these forward-looking statements. You are advised to consult your own independent tax and business advisors regarding the validity and reasonableness of any factual, accounting and tax assumptions. No representations or warranties of any kind are made by the Fund, the General Partner or any other person or entity as to the future profitability of the Fund or the results of an investment in the Fund. Past performance is not indicative of future results.
The funds described herein are unregistered private investment funds commonly referred to as “hedge funds” (each, a “Private Fund”). Private funds, depending on their investment objectives and strategies, may invest and trade in a variety of different markets, strategies and instruments (including securities, securities and derivatives) and are NOT subject to to the same regulatory requirements as mutual funds, including requirements to provide certain periodic and standardized pricing and valuation information to investors. An investment in a private fund involves substantial risks (which also apply to the underlying private funds, if any, in which a private fund may invest).
Prospective investors should note that:
• A private fund represents a speculative investment and involves a high degree of risk. Investors must have the financial capacity, sophistication/experience and willingness to assume the risks of investing in a private fund. An investor could lose all or a substantial part of his investment.
• An investment in a Private Fund is not suitable for all investors and should be discretionary capital reserved strictly for speculative purposes. Only qualified eligible investors may invest in a Private Fund.
• A Private Fund’s prospectus or offering documents are not reviewed or approved by federal or state regulators and its private equity interests are not federally or state registered.
• An investment in a private fund may be illiquid and there are significant restrictions on the transfer or redemption of interests in a private fund. There is no recognized secondary market for an investor’s interests in a Private Fund and none is expected to develop. Substantial redemptions within a limited timeframe could adversely affect the Private Fund.
• Certain assets in a Private Fund’s portfolio may be illiquid and without readily ascertainable market value. The involvement of the manager/advisor in the evaluation process creates a potential conflict of interest. Cases of mispriced portfolios, due to fraud or negligence, have occurred in the industry.
• A Private Fund may have little or no operating or performance history and may use performance information which may not reflect the actual operations of the Private Fund and should be carefully considered. Investors should not place undue reliance on hypothetical, pro forma or historical performance.
• A Private Fund may trade in commodity interest, derivatives and futures, for hedging and speculative purposes, and may execute a substantial portion of transactions in foreign markets, which may involve the risk of loss substantial. The prices of commodities, derivatives and futures can be highly volatile, difficult to predict accurately, involve specialized risks and increase the risk of loss.
• The manager/advisor of a private fund has full trading authority over a private fund. The death or disability of a key person, or their departure, may have a material adverse effect on a Private Fund.
• A Private Fund may use a single manager/advisor or employ a single strategy, which could mean a lack of diversification and higher risk. Alternatively, a Private Fund and its managers/advisers may rely on the expertise and trading experience of third-party managers or advisers, whose identity may not be disclosed to investors, who may trade on a variety of different instruments and markets.
• A Private Fund may involve a complex tax structure, which should be carefully considered, and may involve structures or strategies that may cause delays in sending important financial and tax information to investors.
• The fees and expenses of a private fund, which may be significant regardless of any positive returns, will outweigh the trading profits of that private fund. If a Private Fund’s investments are unsuccessful or insufficiently successful, such payments and expenses may, over time, significantly reduce or deplete the net asset value of the Private Fund.
• A Private Fund and its managers/advisors and their affiliates may be subject to various potential and actual conflicts of interest.
• A Private Fund may employ investment techniques or measures designed to reduce the risk of loss which may not be successful or fully successful.
• A Private Fund may use leverage, including derivatives. Leverage presents specialized risks. The greater the leverage used, the more likely it is that a substantial change in value will occur, up or down.
The above summary is not a complete list of the risks, tax considerations and other important information involved with investing in a private fund and is subject to the fuller information contained in that fund’s offering documents. private, which should be carefully considered before making an investment. .
Oakpoint Solutions, LLC, Member FINRA, SIPC
© Gator Capital Management, LLC
