This Web Site is not a prospectus, circular, advertisement or representation intended for use in the purchase or sale of any security or other financial products. In addition, the information contained herein does not convey an offer of any type, and is neither intended to be nor should be construed as an offer to sell, or the solicitation of an offer to buy, any securities or other financial products. An offer to invest in an interest in a fund will be made only to qualified investors by means of the confidential offering memorandum and subscription documents of such fund to be furnished at a later date, and will be made only in those jurisdictions where permitted by law. Any discussion of any strategy or risks relating to an investment in a fund is qualified in its entirety by the reference to such fund’s confidential offering memorandum. Past performance is not indicative of future results and there is no guarantee that any fund will meet its investment objective or be profitable. The information provided on this website does not necessarily reflect the most up-to-date information available for a fund. Nothing herein is intended as investment, legal, tax or similar advice. Individuals should consult with their own investment, legal, tax and/or similar professionals regarding their specific situations.
This document has been prepared by Chalkstream Capital Group, L.P. (“Chalkstream”) solely for the purpose of providing information to the person to whom it has been delivered. The information contained herein is strictly confidential and may not be reproduced, distributed or published by any recipient for any purpose without the prior written consent of Chalkstream.
The investment product(s) referenced in this document (collectively, the “Fund”) is not, and is not required to be, a registered foreign body corporate in Australia, and this document is not a prospectus lodged or required to be lodged with the Australian Securities and Investments Commission. Shares/interests in the Fund will only be offered in Australia to persons to whom such securities may be offered without a prospectus under Chapter 6D of the Corporations Act 2001 (Cth). The shares/interests subscribed for by investors in Australia must not be offered for resale in Australia for 12 months from allotment except in circumstances where disclosure to investors under the Corporations Act 2001 (Cth) would not be required or where a compliant prospectus is produced. Prospective investors in Australia should confer with their professional advisors if in any doubt about their position.
The investment product(s) referenced in this document (collectively, the “Fund”) is not listed with any stock exchange, organized over the counter market or electronic system of securities trading. Interests in the Fund have not been and will not be registered with any securities exchange commission or other similar authority, including the Brazilian Securities and Exchange Commission (Comissão de valores Mobiliários - or the “CVM”). Interest in the Fund will not be directly or indirectly offered or sold within Brazil through any public offering, as determined by Brazilian law and by the rules issued by the CVM, including Law No. 6,385 (Dec. 7, 1976) and CVM Rule No. 400 (Dec. 29, 2003), as amended from time to time, or any other law or rules that may replace them in the future.
Acts involving a public offering in Brazil, as defined under Brazilian laws and regulations and by the rules issued by the CVM, including Law No. 6,385 (Dec. 7, 1976) and CVM Rule No. 400 (Dec. 29, 2003), as amended from time to time, or any other law or rules that may replace them in the future, must not be performed without such prior registration. Persons in Brazil wishing to acquire interests in the Fund should consult with their own counsel as to the applicability of these registration requirements or any exemption therefrom. Without prejudice to the above, the sale and solicitation of interests in the Fund is limited to professional investors as defined by CVM Rule No. 539 (Nov. 13, 2013), as amended, or as defined by any other rule that may replace it in the future. This document is confidential and intended solely for the use of the addressee and cannot be delivered or disclosed in any manner whatsoever to any person or entity other than the addressee.
Interests in the investment product(s) referenced in this document (collectively, the “Fund”) may not be marketed, offered or sold directly or indirectly to the public in China and neither this document, which has not been submitted to the Chinese Securities and Regulatory Commission, nor any offering material or information contained herein relating to interests in the Fund, may be supplied to the public in China or used in connection with any offer for the subscription or sale of interests in the Fund to the public in China. Interests in the Fund may only be marketed, offered or sold to Chinese institutions which are authorized to engage in foreign exchange business and offshore investment from outside China. Chinese investors may be subject to foreign exchange control approval and filing requirements under the relevant Chinese foreign exchange regulations, as well as offshore investment approval requirements.
The contents of this document have not been reviewed or approved by any regulatory authority in Hong Kong. This document does not constitute an offer or invitation to the public in Hong Kong to acquire interests in the investment product(s) referenced in this document (collectively, the “Fund”). Accordingly, unless permitted by the securities laws of Hong Kong, no person may issue or have in its possession for the purposes of issue, this document or any advertisement, invitation or document relating to interests in the Fund, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong other than in relation to interests in the Fund which are intended to be disposed of only to persons outside Hong Kong or only to “professional investors” (as such term is defined in the Securities and Futures Ordinance of Hong Kong (Cap. 571) (the “SFO”) and the subsidiary legislation made thereunder) or in circumstances which do not result in this document being a “prospectus” as defined in the Companies Ordinances of Hong Kong (Cap. 32) (the “CO”) or which do not constitute an offer or an invitation to the public for the purposes of the SFO or the CO. The offer of interests in the Fund is personal to the person to whom this document has been delivered by or on behalf of the Fund, and a subscription for interests in the Fund will only be accepted from such person. No person to whom a copy of this document is issued may issue, circulate or distribute this document in Hong Kong or make or give a copy of this document to any other person. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
The interests in the investment product(s) referenced in this document (collectively, the “Fund”) described in this document have not been registered and are not expected to be registered under the Israeli Securities Law — 1968 (the ‘‘Securities Law’’) or under the Israeli Joint Investment Trust Law – 1994 due to applicable exemptions. Accordingly, the interests in the Fund described herein will only be offered and sold in Israel pursuant to applicable private placement exemptions, to parties that qualify as both (i) Sophisticated Investors described in Section 15A(b)(1) of the Securities Law and (ii) as “Qualified Customers” for purposes of Section 3(a)(11) of the Law for the Regulation of Provision of Investment Advice, Marketing Investments and Portfolio Management – 1995 16(the “Investment Advisor Law”). Neither the Fund nor the Fund’s manager is a licensed investment marketer under the Investment Advisor Law and neither the Fund nor the Fund’s manager maintains insurance as required under such law. The Fund and Fund’s manager may be deemed to be providing investment marketing services but are not investment advisors for purposes of Israeli law. Any investment advice which may be deemed provided under Israeli law in connection with an investment in the Fund is deemed provided on a one time only basis and neither the Fund nor the Fund’s manager will provide any ongoing investment marketing or investment advisory services to the investor. If any recipient in Israel of a copy of this document is not qualified as described above, such recipient should promptly return this document to the Fund. By retaining a copy of this document you are hereby confirming that you qualify as both a Sophisticated Investor and Qualified Customer, fully understand the ramifications thereof and agree to be treated as such by the Fund.
No public offering of interests in the investment product(s) referenced in this document (collectively, the “Fund”) is being made to investors resident in Luxembourg. Interests in the Fund are being offered only to a limited number of sophisticated and professional investors in Luxembourg. The Commission de Surveillance du Secteur Financier of Luxembourg has not passed upon the accuracy or adequacy of this document or otherwise approved or authorized the offering of interests in the Fund to investors resident in Luxembourg. Material information provided to investors, including information disclosed in the context of meetings relating to offers of securities, shall be disclosed to all investors to whom the offer is exclusively addressed.
This document and any other material in connection with the offer or sale is not a prospectus as defined in the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”). Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply. You should consider carefully whether the investment is suitable for you.
This document has not been registered as a prospectus with the Monetary Authority of Singapore (the “MAS”) and this offering is not regulated by any financial supervisory authority pursuant to any legislation in Singapore. The investment product(s) referenced in this document (collectively, the “Fund”) is not authorised or recognised by the MAS and interests in the Fund are not allowed to be offered to the retail public. Accordingly, this document and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the interests may not be circulated or distributed, nor may the interests be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 4A of the SFA, (ii) to a relevant person under Section 305(1) of the SFA, (iii) to any person pursuant to an offer referred to in Section 305(2) of the SFA, or (iv) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.
Certain resale restrictions apply to the offer and investors are advised to acquaint themselves with such restrictions.
Where the interests are subscribed or purchased under Section 305 of the SFA by a relevant person which is:
(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or
(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, shares, debentures and units of shares and debentures of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within 6 months after that corporation or that trust has acquired the interests pursuant to an offer made under Section 305 except:
to an institutional investor or to a relevant person defined in Section 305(5) of the SFA, or to any person pursuant to an offer that is made on terms that such shares, debentures and units of shares and debentures of that corporation or such rights and interest in that trust are acquired at a consideration of not less than S$200,000 (or its equivalent in a foreign currency) for each transaction, whether such amount is to be paid for in cash or by exchange of securities or other assets, and further for corporations, in accordance with the conditions specified in Section 275 of the SFA;
where no consideration is or will be given for the transfer; or
where the transfer is by operation of law.
This document has not been nor will it be registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the interests in the investment product(s) referenced in this document (collectively, the “Fund”) offered hereunder be marketed and offered for sale in Sweden, other than under circumstances which are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella instrument). Accordingly, the offering of interests in the Fund will only be directed to persons in Sweden who subscribe to interests in the Fund for a total consideration of at least €100,000 per investor.
As of the date of this document Chalkstream is not authorised or regulated by the UK Financial Conduct Authority. This document is being communicated by Chalkstream and in the United Kingdom it is only being provided to those persons to whom it may lawfully be issued under The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 including persons who are authorised under the Financial Services and Markets Act 2000 of the United Kingdom (the “Act”), certain persons having professional experience in matters relating to investments, high net worth companies, high net worth unincorporated associations and partnerships and trustees of high value trusts. This document is exempt from the prohibition in Section 21 of the Act on the communication by persons not authorised under the Act of invitations or inducements to engage in investment activity on the ground that it is being issued only to such types of person and only such persons may act on or rely on this document or any of its contents. The investment product(s) referenced in this document (collectively, the “Fund”) is not regulated by the FCA and investors may not have the benefit of the Financial Services Compensation Scheme and other protections afforded by the Act or any of the rules and regulations made thereunder.
CHALKSTREAM RETURN METHODOLOGY
The hedge fund performance of Chalkstream Investment Fund, L.P. or Chalkstream Investment Fund (International), Ltd. (each, a “Fund”) is computed based on month-end statements and performance indications received from underlying portfolio managers and the performance of the Fund’s direct investments as computed based on the valuation policy outlined in the Fund’s offering documents. For the purposes of the relevant document, the Fund’s revenue share with hedge fund managers and special investments have been marked at fair value (“Fair Value”) based on internal models of Chalkstream. Under Accounting Standards Codification 820 (“ASC 820”), ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Chalkstream G.P., L.L.C., the Fund’s general partner, is not allocated an incentive allocation based on special investment valuations. As has always been the case, the incentive allocation is only taken when a special investment is realized above the designated hurdle rate. The marks provided are for informational purposes only. Fair Value is determined by Chalkstream. Chalkstream utilizes four sources of information in order to determine, in its best estimation, the Fair Value of a special investment. The first source is information from special investment managers. Various special investment managers conduct a rigorous valuation process on a regular basis and provide this information to Chalkstream. Chalkstream is then able to use this valuation, adjust for fees and other items, and come to a Fair Value for the special investment. The second source is public and other information. Several special investments have publicly-traded components that make marking to Fair Value relatively easy, as the public price (less transaction and other costs) is the value of Chalkstream’s interest in the investment. The third source is an internal valuation for each special investment. In order to come to this figure, Chalkstream works closely with its managers to determine conservative cash flow and exit multiple assumptions and may utilize these figures in discounted cash flow analyses. The fourth source is an independent valuation agent that Chalkstream has engaged to provide an opinion on the valuation methodology used for specific internally-valued investments. Using a combination of these four sources, Chalkstream believes it is able to calculate an accurate Fair Value for its special investments. Due to the timing relating to the release of the performance estimates shown and Chalkstream’s internal modeling on performance, the return estimates disclosed herein, particularly relating to the special investments and total net return, will not necessarily agree to the final overall performance as issued by the Fund’s administrator or annual audited financial statements. Chalkstream has consulted with its auditors, Ernst & Young, to ensure proper procedures for Fair Value accounting are being followed.
USE OF INDICES
The HFRI Fund of Funds Composite Index (the “HFR FoF Index”) is a composite of funds of funds from four strategies: conservative, market defensive, diversified and strategic. The index is fund weighted and includes both domestic and offshore funds. There is no required asset size minimum and no required length of time a fund must be actively traded before inclusion in the index. The index is updated three times per month: Flash Update (5th business day of the month), Mid Update (15th of the month), and End Update (1st business day of following month). If a fund liquidates/closes, that fund's performance will be included in the index as of that fund's last reported performance update.
The S&P 500 Total Return Index (the “S&P 500” or "S&P") is the total return version of the S&P 500 Index. Dividends are reinvested on a daily basis on the ex-date. The S&P 500 Index is comprised of a representative sample of 500 large-cap companies. The S&P 500 is an unmanaged, float-weighted index with each stock's weight in the index in proportion to its float, as determined by Standard & Poor’s. The S&P 500 is one of the most widely used benchmarks of U.S equity performance.
The S&P 500 VIX Futures Index Series (the "VIX Futures") measures the return from a daily rolling long position in the VIX futures contracts traded on the CBOE. The short-term index is comprised of the first and second contract months.
The BofA Merrill Lynch US Corporate, Government & Mortgage Index (the “ML Bond Index” or "Bond") tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasuries, quasi-governments, corporates, covered bonds and residential mortgage pass-throughs. Non-residential mortgage collateralized debt such as commercial mortgage backed securities and asset backed securities are excluded from the Index, as are all collateralized mortgage obligations. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch), an investment grade rated country of risk (based on an average of Moody’s, S&P and Fitch foreign currency long-term sovereign debt ratings), at least one year remaining term to final maturity and a fixed coupon schedule.
The Korea Stock Exchange KOSPI Index is a capitalization-weighted index of all common shares on the Korean stock exchanges.
The KOSPI 200 index is a capitalization‐weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3rd, 1990.
The KOSPI Small Cap Index is a capitalization-weighted index of stocks ranked from 301 in terms of market capitalization on the Korea Stock Exchange. The index was developed with a base value of 1,000 as of January 4th, 2000. Source: Korea Stock Exchange
The KOSPI Mid Cap Index is a capitalization-weighted index of stocks ranked 101 to 300 in terms of market capitalization on the Korea Stock Exchange. The index was developed with a base value of 1,000 as of January 4th, 2000. Source: Korea Stock Exchange
The KOSPI Large Cap Index is a capitalization-weighted index of the top 100 stocks in terms of market capitalization on the Korea Stock Exchange. The index was developed with a base value of 1,000 as of January 4th, 2000. Source: Korea Stock Exchange
The KOSDAQ Index is a capitalization-weighted index that measures the performance of the KOSDAQ market. The index was developed with a base value of 100 as of July 1, 1996. The base value changed to 1000 as of Jan. 26, 2004. Note: The preferred shares are excluded in calculating KOSDAQ index from June 26, 2000.
The MSCI Korea Index is designed to measure the performance of the large and mid cap segments of the South Korean market. With 112 constituents, the index covers about 85% of the Korean equity universe.
The MSCI Emerging Markets Index is an index designed to measure equity market performance in global emerging markets
The Shanghai Stock Exchange Composite Index (SHCOMP) is a capitalization-weighted index. The index tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange.
The Tokyo Stock Price Index (TOPIX) is a capitalization weighted index of all companies listed on the first section of the Tokyo stock exchange. The TOPIX is supplemented by the sub-indices of the 33 industry sectors. The TOPIX calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of Jan 4, 1968.
The above captioned indices are collectively the “Indices.” The returns for the Indices are provided for comparison purposes only to show how the Fund’s returns compared to broad-based indices of securities, real assets, and hedge funds. When possible, performance shown is “total return” (including reinvestment of interest and dividends) as calculated by the index provider or Bloomberg. There are significant differences between the Fund’s investments and the Indices. For instance, the Fund may use leverage and invest in securities that have a greater degree of risk and volatility, as well as less liquidity, than those securities contained in the Indices. Moreover, the Indices are unmanaged and not subject to any management fees, incentive compensation or expenses. The Indices may not be investable. It should not be assumed that the Fund will invest in any specific securities that comprise the Indices, nor should it be understood to mean that there is a correlation between the Fund’s returns and the performance of the Indices.
The information contained herein is general in nature and is for informational use only, and is not intended as legal, tax, or investment advice, either express or implied. Past performance is neither indicative nor a guarantee of future results, and there is no guarantee that any investment product will meet its investment objectives or be profitable. No representation is made that an investor will or is likely to achieve results comparable to those shown. Amounts shown do not necessarily correspond with U.S. GAAP.
INFORMATION CONTAINED IN THIS DOCUMENT:
(a) is assumption-driven; may be reliant, in whole or in part, on third-party data or information sources; may be inaccurate; is subject to adjustments; and is subject to change;
(b) uses models that may be simplified; reflects judgements made by Chalkstream; may not take into account all potentially significant factors; and is depended and may vary based on inputs and types of models used;
(c) cannot be used to predict the expected performance or returns of any portfolio;
(d) cannot be extrapolated linearly to predict impact of large market moves; and
(e) does not incorporate all inputs and factors that may impact a portfolio.
This document is not a prospectus, circular, advertisement or representation intended as an offer to sell or a solicitation of an offer to purchase an interest or security in any investment product. An offer to invest in any such security will only be made by means of the confidential memorandum (the “memorandum”) of the investment product and subscription documents. Any discussion of any strategy or risks relating to an investment in any investment product is qualified in its entirety by the reference to the memorandum of such product.
An investment in an investment product may not be suitable for all investors. An investment in an investment product will be suitable only for certain financially sophisticated investors who meet certain eligibility requirements, have no need for immediate liquidity in their investment, and can bear the risk of an investment in such product for an extended period of time.
Investing in financial markets involves a substantial degree of risk. There can be no assurance that the investment objectives described herein will be achieved. Investment losses may occur, and investors could lose some or all of their investment. No guarantee or representation is made that an investment product’s investment program, including without limitation its investment objectives, diversification strategies, or risk monitoring goals, will be successful, and investment results may vary substantially over time. Investment losses may occur from time to time. Nothing herein is intended to imply that an investment product’s investment methodology may be considered "conservative," "safe," "risk free," or "risk averse." Economic, market, and other conditions could also cause an investment product to alter its investment objectives, guidelines, and restrictions.
Chalkstream assumes no obligation to inform any person of any changes in the tax law or other factors that could affect the information contained herein. To comply with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained herein (including any attachments), unless specifically stated otherwise, is not intended or written to be used, and cannot be used, for the purposes of (i) avoiding penalties under the internal revenue code or (ii) promoting, marketing, or recommending to another party any transaction or matter herein.
LIMITATIONS ON USE OF INFORMATION: The information contained herein is preliminary, is provided for discussion purposes only, is only a summary of key information and is not complete. Chalkstream believes the information contained in this material to be reliable but does not warrant its accuracy or completeness. The estimates, investment strategies, views, and other content included in this document are based upon current market conditions and/or data and information provided by unaffiliated third parties and is subject to change without notice. Chalkstream has not verified the accuracy of information provided by unaffiliated third parties and does not warrant the accuracy or completeness of such information. Unless otherwise indicated, the information herein is solely the opinion of Chalkstream and is not intended to be taken as fact by the recipient or understood to be investment advice for the benefit of the Fund or any other person.
CONFIDENTIAL INFORMATION: This document is confidential, is intended only for the person to whom it has been provided and under no circumstance may a copy be shown, copied, transmitted, or otherwise given to any person other than the authorized recipient without the prior written consent of Chalkstream. Notwithstanding anything to the contrary herein, each recipient to this summary (and each employee or representative of each recipient) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of: (i) of the Fund and (ii) any of their transactions, and all materials of any kind (including opinions or other tax analyses) relating to the applicable tax treatment and tax structure. The distribution of the information contained herein in certain jurisdictions may be restricted, and, accordingly, it is the responsibility of any prospective investor to satisfy itself as to compliance with relevant laws and regulations.
FORWARD-LOOKING STATEMENTS: This document contains certain “forward-looking statements” that are based on assumptions and judgments with respect to, among other things, future economic, competitive and market conditions, future business decisions, expectations with regard to representative investments, anticipated portfolio concentration, investment opportunities, ability to create value, nature of investments, fund characteristics, strategy implementation, investment criteria, and/or strategy objectives, all of which are difficult or impossible to predict accurately and many of which are beyond Chalkstream's control. Because of the significant uncertainties inherent in these assumptions and judgments, you should not place undue reliance on these forward-looking statements, nor should you regard the inclusion of these statements as our representation that the Fund will achieve any its strategy, objectives or other plans. The opinions expressed herein are current opinions as of the date appearing in this material only. There is no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, nor is there any assurance that the policies, strategies or approaches discussed herein will not change.
In Switzerland, the Fund may only be offered or distributed to qualified investors. For this, the Fund has appointed as Swiss Representative Oligo Swiss Fund Services SA, Av. Villamont 17, 1005 Lausanne, Switzerland, Tel: +41 21 311 17 77, email: email@example.com. The Fund’s paying agent is Banque Heritage. Any Fund documentation may be obtained free of charge from the Swiss Representative in Lausanne.
Chalkstream is not affiliated with PDT Partners, LLC or any of its affiliates and as such they are not liable under any circumstances for the actions of Chalkstream. Peter Muller (“Mr. Muller”), who is currently the chief executive officer of PDT Partners, LLC, is an investor in investment products managed or advised by Chalkstream and is not an employee, director, or officer of Chalkstream. Mr. Muller is a special limited partner in Chalkstream and is a non-managing member of Chalkstream Capital Management, L.L.C, the general partner of Chalkstream.
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