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Disclosures

 

Past performance is not a guaranty of future results. Current and prospective investors should not assume that the future performance of any Crestline fund will equal its prior performance results or the results of any previous fund with a similar strategy, and investors risk loss of their entire investment. Each fund’s performance results portrayed reflect the deduction of that fund’s advisory fees, brokerage commissions and other expenses.  The performance results also include the reinvestment of income and dividends, in investment vehicles where such are applicable.  For each Crestline fund, an individual investor’s returns will vary from the historical performance due to restrictions on participation in certain types of investments and due to the timing of subscriptions, withdrawals, and redemptions.

 

Within a particular strategy, Crestline may offer a domestic fund and an offshore fund (“Funds”) that are managed pari passu. In such cases the Funds managed by Crestline will have investment objectives that are identical or substantially similar. It is not anticipated, however, that the Funds managed by Crestline having identical or substantially similar investment objectives will have identical or substantially similar investment portfolios. Differing investment portfolios can be expected to result from several factors, including, without limitation, the following:

  • regulatory constraints that apply to the Funds managed by Crestline;
  • investment constraints imposed by the Investment Managers of the underlying fund that the Funds may invest in;
  • the availability of underlying funds for investment at certain times but not at others; and
  • the amount of cash available for investment at certain time by the Funds.

 

As a result of factors such as these, Funds that are managed pari passu may have a different investment portfolio (and, as a result, different performance results) even though the funds may have identical or substantially similar investment objectives.

 

The targeted returns are forward-looking statements that are subject to uncertainties described further in the relevant offering memorandum. The targeted returns are based on research conducted by Crestline and the conclusions are Crestline’s opinions based on its own independent study. The return targets are supported by various quantitative measures including 1) the actual track record of the funds, 2) back-tested returns of a pro-forma portfolio using the fund’s current asset allocation and 3) a forecast return calculated using a third-party risk model. For further information on targeted returns including input data and calculation methodology please contact Client Servicing. While Crestline believes that the return targets are supportable, there is no guarantee that the funds will achieve the targeted returns. The targeted rates of return included in this presentation are hypothetical returns, and are for illustrative purposes only. Accordingly, no assumptions or comparisons should be made based upon these returns. Targeted returns are subject to inherent limitations, including but not limited to the fact that the returns do not take into account the impact that market and economic risks may have on investment decision trading. In some circumstances the funds have experienced materially different investment results than the targeted returns, and all targeted returns should be viewed together with the actual returns also included in this presentation. In no circumstances should the targeted returns be regarded as a representation, warranty or prediction that the fund will reflect any particular performance or that it will achieve or is likely to achieve any particular result or that investors will be able to avoid losses, including total losses of their investment.

 

Standard deviation is a statistical measure of the dispersion of a fund's monthly returns. The greater the standard deviation, the greater a fund's volatility.  The indices presented herein (including, but not limited to the Russell 2000, S&P 500, and NASDAQ 100) indices are diversified indices of equity securities, while the Funds managed by Crestline invest in other private investment funds.  Due to the differences between the funds’ portfolios and the composition of the aforementioned indices, Crestline cautions investors that no such index is directly comparable to the funds. The indices provided herein have not been selected to represent an appropriate benchmark but rather are used to allow for comparison of standard deviations to that of well-known and widely recognized indices.

 

Correlations to the performance of the indices presented herein (including, but not limited to the Barclays Capital Aggregate Index, S&P 500 Index, and HFR Fund of Fund Conservative Index) are shown for comparison purposes only.  The securities included in those indices are not necessarily included in the portfolios of the investment funds in which Crestline funds invest and criteria for inclusion in those indices are different and not limited to particular investment strategies. In addition, investors may not invest directly in an index. Therefore, the returns of Crestline funds and the returns of such indices may not be comparable.

 

Some material herein may include charts and graphs depicting the performance of various indices and highlighting market conditions. Such charts and graphs are shown for informational purposes only.  The securities included in those indices are not necessarily included in the portfolios of the investment funds in which Crestline funds invest and criteria for inclusion in those indices are different and not limited to particular investment strategies. In addition, investors may not invest directly in an index. Therefore, the returns of Crestline funds and the returns of such indices may not be comparable.

 

Principal executive officers of Crestline are also associated with Bratton Capital Management, LP (“BCM”) a firm that acts as the investment adviser and general partner to single family-office-related investments.  Crestline and BCM are under common control.

 

This report may not be reproduced, distributed or transmitted in whole or in part in any media.

 

Some information contained herein is based on data received from third parties that we consider reliable and is accurate to the best of Crestline’s knowledge.  However, Crestline has not independently verified the information and does not otherwise give any warranty as to the truth, accuracy, or completeness of such third party data, and it should not be relied upon as such. The material is not intended to be a formal research report and nothing in this presentation should be interpreted to state or imply that past results are an indication of future performance.

 

This document is a summary and does not constitute an offer to sell or a solicitation of any offer to buy or sell securities of any entity, investment product or investment advisory service. Any offer will be made only pursuant to a confidential offering memorandum.

 

Any opinions expressed herein are our current opinions only. There can be no assurance or guarantee that Crestline's investment strategy will achieve its stated goal.  All information provided in this site is for informational purposes only. In addition, it should not be assumed that any of the securities and/or strategies discussed herein were or will prove to be profitable. Crestline accepts no liability for loss arising from the use of this material.

 

The inclusion of the Bass family name in this presentation is used exclusively to demonstrate the history of the Firm.  It is not intended by the preparer, nor should it be construed by the reader, to be in any manner a client testimonial.

 

General Risks of Investing in the Crestline Funds

An investment in the Funds is speculative and involves a high degree of risk.  Crestline Management, L.P., is a federally registered investment adviser and serves as the investment manager to the domestic and offshore hedge fund of funds.  Crestline Canada, Inc., an affiliate,  is investment adviser to Canadian “beta” overlay trust clients and to Crestline Management, L.P. with respect to certain “beta” overlay services.  Crestline Canada provides portfolio overlay and hedging execution capabilities to client portfolios as well as Crestline’s diversified fund of hedge funds.  Crestline Investors, Inc., Crestline Management, L.P. and Crestline Canada, Inc. are individually and collectively referred to herein as “Crestline” or “the Firm.”  Crestline’s investment funds (the “Funds”) utilize a fund of funds investment approach whereby Fund assets are allocated among portfolio managers.  As a result, the success of the Funds is dependent on the portfolio managers’ ability to develop and implement investment strategies that achieve the Funds’ investment strategies.  The Funds are not subject to regulatory restrictions or oversight.  The principals of Crestline Investors, Inc. are Douglas K. Bratton, John Cochran and Caroline Cooley (the “Principals”).  The success of the Funds’ investment program will also depend on the expertise of the Principals in choosing portfolio managers.  If the Principals were to cease to be associated with the Funds it is likely that the success of their investment program would be adversely affected.  The Funds, particularly Crestline Plus, employ leverage, which among other investment techniques, can make their investment performance volatile.  Opportunities for redemptions and transferability of interests in the Funds are restricted so investors may not have access to their capital if and when it is needed.  There is no secondary market for an investor’s interest in the Funds and none is expected to develop.  The Funds’ management fees, incentive fees/allocations, and expenses, may offset their trading profits.  An investor should not invest in the Funds unless it is prepared to lose all or a substantial portion of its investment.

 

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