Nantucket Companies Disclosure
Please note that this communication does not constitute an offer to sell, nor is it a solicitation of an offer to purchase an interest in any unaffiliated hedge fund or fund-of-funds managed by a Nantucket Company. Any such offer or solicitation can be made only through the appropriate Confidential Offering Memorandum which should be read carefully, especially the “Risk Factors” section, before making a decision to invest in any fund. Investors must independently assess the suitability of any particular investment opportunity and carry out any due diligence that they require in relation to the strategies or investments of any hedge fund mentioned herein or fund-of-funds managed by a Nantucket Company. In doing so, investors should seek advice from their own advisers.
A hedge fund or fund-of-funds mentioned herein is a private unregistered investment vehicle and is not subject to the same regulatory/disclosure requirements as a registered investment company such as a mutual fund. A hedge fund or fund-of-funds may employ one or more “alternative” investment techniques, which can include arbitrage techniques, long and short positions, leverage, derivatives and investments in many different types of securities and markets, including foreign markets. The Nantucket fund-of-funds (“Nantucket FOF”) invests in underlying private investment funds generally referred to as hedge funds and, because of its structure, involves multiple layers of fees, which can negatively effect performance results. As with many investments, hedge funds and fund-of-funds are speculative, involve a high degree of risk and can be volatile. Investments in hedge funds and fund-of-funds are illiquid, are subject to significant transfer restrictions and have no secondary trading market. Investors in hedge funds and fund-of-funds could lose all or a substantial portion of their investment.
The performance of any Nantucket FOF is for a new issue eligible investor who invested at inception (1/1/1996) and who was charged the highest fee structure possible in all periods. Beginning January 2006, (the master fund) Nantucket Fund, LP’s fee structure was modified (1) to eliminate a one-time subscription fee on new capital contributions, (2) to reflect the addition of a 10% annual incentive allocation, which is only charged in years when an investor’s calendar year return exceeds a minimum hurdle rate of return of 10%, net of all fees and subject to a high water mark, and (3) to reflect management fees charged monthly in arrears instead of quarterly in advance. This change in fee structure is fully reflected in performance presentations and includes the monthly accrual of incentive allocation where applicable. Fees can vary by investor in certain of our Nantucket FOF as a result of the size or timing of their investment. The performance results of individual investors in the Nantucket FOF may vary depending upon the timing, size and fee structure of their investment(s). Investors in Nantucket Institutional Fund (Cayman) SPC (a feeder fund) may experience different performance than the master fund due to operating expenses and withholding taxes. Investors in Nantucket Levered, LLC (a feeder fund) may experience more volatile performance and at times possibly lower performance than the master fund due to the cost and results of leverage, especially in a combined high interest rate and low return environment. Moreover, there can be no assurance that comparable historical investment returns can be achieved by any hedge fund or fund-of-funds mentioned herein or underlying managers selected for any fund-of-funds managed by a Nantucket Company.
All hedge fund and fund-of-funds performance figures in this correspondence are net, estimated and unaudited, based on estimated and unaudited net asset valuations or net performance measurements (supplied by the underlying fund managers in the case of a fund-of-funds), unless otherwise stated, and are subject to final year-end audit and adjustment. In the case of Nantucket’s FOF, performance is calculated by an independent administrator, net of all fees including those of Nantucket as well as underlying managers; certain risk figures are calculated using eVestment.
Annually, Nantucket FOF audits are completed by June 30th for prior year which should be taken into consideration when viewing Nantucket FOF performance results. The performance numbers of the hedge funds (who might also be underlying private investment funds in the Nantucket FOF) have not been independently verified by Nantucket or our accountants. Underlying manager performance data is sourced by Nantucket from various public and private sources including eVestment.
The information contained in this communication may contain forward-looking statements that reflect the current views of a Nantucket Company and/or its principals or employees (collectively the “Company”), with respect to future business or performance of a Nantucket Company, any Nantucket FOF, the underlying private investment funds or managers of a Nantucket FOF or other hedge fund manager. Any forward-looking statements contained in this correspondence are based upon historical information and the current plans, estimates and expectations of the Company. The inclusion of this or other forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations of a Nantucket Company, Nantucket FOF, underlying private investment fund or its manager of a Nantucket FOF or other hedge fund manager mentioned by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, including but not limited to global and domestic market and business conditions. If one or more risks or uncertainties materialize, or if the Company’s assumptions prove to be incorrect, actual performance results of any Nantucket FOF, underlying private investment fund of a Nantucket FOF or other hedge fund may vary materially from those indicated in these forward-looking statements. Any modeled or hypothetical returns are not actual results, are based on certain assumptions and should not be considered an indication of the skillset of Nantucket Multi Managers or performance of any Nantucket FOF.
Nantucket Multi Managers, LLC, the “manager” of the Nantucket FOF is registered as an Investment Advisor with the Securities and Exchange Commission (“SEC”). William K. M. Goldsmith is the Managing Member of Nantucket Multi Managers, LLC, which has been the sole General Partner of the Nantucket Fund, LP since January 1, 2001. From January 1, 2000 until December 31, 2000 Nantucket Multi Managers LLC shared the General Partnership duties with Metamora Multi Managers, LLC which was the sole General Partner from inception of the Nantucket Fund, LP (which prior to January 1, 2001 was known as The Metamora Fund, LP) through December 31, 1999. During the time period when Metamora Multi Managers, LLC was the General Partner, William K. M. Goldsmith was a consultant to the General Partner advising the General Partner on underlying manager selection and prospective investors. Nantucket Multi Managers, LLC is exempt from registration with the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator pursuant to Rule 4.13(a)(3). Nantucket Multi Managers, LLC filed for registration as a Commodity Pool Operator (“CPO”) on 11/14/2012, which is pending approval. Since Nantucket Multi Managers, LLC is currently not registered as a Commodity Pool Operator, it is not subject to the CFTC rules requiring the delivery of a disclosure document or a certified annual report to prospective investors and current investors, respectively. All Nantucket funds are offered through the issuer relying on the issuer exemption. Nantucket Capital Management, LLC, an affiliate of Nantucket Multi Managers, LLC, is also registered with the SEC as an Investment Advisor. Refer to ADV-1 for information regarding Nantucket Multi Managers, LLC and affiliates. Conflicts of interest are described in the “Risk Factor” section of the relevant Nantucket funds’ Confidential Offering Memorandum, as well as in ADV-2A for Nantucket Multi Managers, LLC.
Index data is obtained from HFR, S&P, MSCI and other online databases and is believed to be accurate but is not independently verified. The HFRI FOF Diversified Index is an index maintained by Hedge Fund Research, Inc. that includes funds of hedge funds that invest “in a variety of strategies among multiple managers” and is not an investable index. MSCI World TR Net is the total return of the MSCI World Index, including the reinvestment of dividends, and net of estimated international taxes for a U.S. investor. No representation is made that a hedge fund or fund-of-funds have been or will be comparable or similar to the securities comprising any selected indices or benchmarks shown, either in composition or element of risk involved. Such comparisons are solely to illustrate the relevant hedge fund or fund-of-funds performance against the index shown. Index performance numbers, where stated, are reported with dividends re-invested unless otherwise noted.
Past performance is not indicative of future results.
Information contained in these materials is obtained from sources we deem to be reliable; however, we cannot and do not guarantee its accuracy and is subject to change without notice.
Updated: 10-24-2017