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Axos Monetary Inventory: An Outsized Alternative (NYSE:AX)


Further disclosure: Gator Capital Administration, LLC ready this letter. Ultimus LeverPoint Fund Options, LLC, our administrator, is liable for the distribution of this info and never its content material.

Normal Disclaimer

By accepting this funding letter, you agree that you’ll not expose any info contained herein to another get together. This letter and its contents are confidential and proprietary info of the Fund, and any copy of this info, in entire or partially, with out the prior written consent of the Fund is prohibited.

The knowledge contained on this letter displays the opinions and projections of Gator Capital Administration, LLC (the “Normal Accomplice”) and its associates as of the date of publication, that are topic to vary with out discover at any time subsequent to the date of challenge. All info offered is for informational functions solely and shouldn’t be deemed as funding recommendation or a suggestion to buy or promote any particular safety.

All efficiency outcomes are based mostly on the web asset worth of the Fund. Internet efficiency outcomes are offered internet of administration charges, brokerage commissions, administrative bills, and accrued efficiency allocation, as indicated, and embody the reinvestment of all dividends, curiosity, and capital features. The efficiency outcomes characterize Fund-level returns and are usually not an estimate of any particular investor’s precise efficiency, which can be materially completely different from such efficiency relying on quite a few components.

The market indices showing on this letter have been chosen for functions of evaluating the efficiency of an funding within the Fund with sure well-known fairness benchmarks. The statistical information relating to the indices has been obtained from Bloomberg and the returns are calculated assuming all dividends are reinvested. The indices are usually not topic to any of the charges or bills to which the funds are topic and should contain considerably much less danger than the Fund. The Fund will not be restricted to investing in these securities which comprise these indices, its efficiency could or could not correlate to those indices, and it shouldn’t be thought of a proxy for these indices. The S&P 500 Complete Return Index is a market cap weighted index of 500 extensively held shares usually used as a proxy for the general U.S. fairness market. The S&P 1500 Financials Index is a market cap weighted index of economic shares throughout the S&P 1500 Tremendous Composite Index we used as a proxy for the Financials sector of the U.S. fairness market. An funding can’t be made straight in both index. The Fund consists of securities which fluctuate considerably from these within the benchmark indices listed above. Accordingly, evaluating outcomes proven to these of such indices could also be of restricted use.

Statements herein that mirror projections or expectations of future monetary or financial efficiency of the Fund are forward-looking statements. Such “forward-looking” statements are based mostly on numerous assumptions, which assumptions could not show to be right. Accordingly, there could be no assurance that such assumptions and statements will precisely predict future occasions or the Fund’s precise efficiency. No illustration or guarantee could be on condition that the estimates, opinions, or assumptions made herein will show to be correct. Any projections and forward-looking statements included herein must be thought of speculative and are certified of their entirety by the knowledge and dangers disclosed within the Fund’s Non-public Placement Memorandum. Precise outcomes for any interval could or could not approximate such forward-looking statements. You’re suggested to seek the advice of with your individual unbiased tax and enterprise advisors in regards to the validity and reasonableness of any factual, accounting and tax assumptions. No representations or warranties in anyway are made by the Fund, the Normal Accomplice, or another particular person or entity as to the longer term profitability of the Fund or the outcomes of investing within the Fund. Previous efficiency will not be a assure of future outcomes.

The funds described herein are unregistered non-public funding funds generally known as “hedge funds” (every, a “Non-public Fund”). Non-public Funds, relying upon their funding aims and methods, could make investments and commerce in a wide range of completely different markets, methods and devices (together with securities, nonsecurities and derivatives) and are NOT topic to the identical regulatory necessities as mutual funds, together with necessities to offer sure periodic and standardized pricing and valuation info to traders. There are substantial dangers in investing in a Non-public Fund (which are also relevant to the underlying Non-public Funds, if any, by which a Non-public Fund could make investments).

Potential traders ought to be aware that:
• A Non-public Fund represents a speculative funding and includes a excessive diploma of danger. Buyers should have the monetary means, sophistication/expertise, and willingness to bear the dangers of an funding in a Non-public Fund. An investor may lose all or a considerable portion of his/her/its funding.
• An funding in a Non-public Fund will not be appropriate for all traders and must be discretionary capital put aside strictly for speculative functions. Solely certified eligible traders could put money into a Non-public Fund.
• A Non-public Fund’s prospectus or providing paperwork are usually not reviewed or accepted by federal or state regulators and its privately positioned pursuits are usually not federally, or state registered.
• An funding in a Non-public Fund could also be illiquid and there are important restrictions on transferring or redeeming pursuits in a Non-public Fund. There isn’t any acknowledged secondary marketplace for an investor’s curiosity in a Non-public Fund and none is predicted to develop. Substantial redemptions inside a restricted time frame may adversely have an effect on the Non-public Fund.
• Sure portfolio belongings of a Non-public Fund could also be illiquid and with no readily ascertainable market worth. The supervisor’s/advisor’s involvement within the valuation course of creates a possible battle of curiosity. Cases of mispriced portfolios, resulting from fraud or negligence, have occurred within the trade.
• A Non-public Fund could have little or no working historical past or efficiency and should use efficiency info which can not mirror precise buying and selling of the Non-public Fund and must be reviewed fastidiously. Buyers shouldn’t place undue reliance on hypothetical, professional forma or predecessor efficiency.
• A Non-public Fund could commerce in commodity pursuits, derivatives, and futures, each for hedging and speculative functions, and should execute a considerable portion of trades on overseas exchanges, all of which may lead to a considerable danger of loss. Commodities, derivatives, and futures costs could also be extremely unstable, could also be tough to precisely predict, carry specialised dangers and might enhance the chance of loss.
• A Non-public Fund’s supervisor/advisor has complete buying and selling authority over a Non-public Fund. The loss of life or incapacity of a key particular person, or their departure, could have a cloth adversarial impact on a Non-public Fund.
• A Non-public Fund could use a single supervisor/advisor or make use of a single technique, which may imply a scarcity of diversification and better danger. Alternatively, a Non-public Fund and its managers/advisors could depend on the buying and selling experience and expertise of third-party managers or advisors, the identification of which might not be disclosed to traders, which can commerce in a wide range of completely different devices and markets.
• A Non-public Fund could contain a posh tax construction, which must be reviewed fastidiously, and should contain buildings or methods that will trigger delays in essential monetary and tax info being despatched to traders.
• A Non-public Fund’s charges and bills, which can be substantial no matter any constructive return, will offset such Non-public Fund’s buying and selling income. If a Non-public Fund’s investments are usually not profitable or are usually not sufficiently profitable, these funds and bills could, over a time frame, considerably scale back or deplete the online asset worth of the Non-public Fund.
• A Non-public Fund and its managers/advisors and their associates could also be topic to numerous potential and precise conflicts of curiosity.
• A Non-public Fund could make use of funding methods or measures aimed to cut back the chance of loss which might not be profitable or absolutely profitable.
• A Non-public Fund could make use of leverage, together with involving derivatives. Leverage presents specialised dangers. The extra leverage used, the extra probably a considerable change in worth could happen, both up or down.

The above abstract will not be a whole checklist of the dangers, tax concerns and different essential disclosures concerned in investing in a Non-public Fund and is topic to the extra full disclosures in such Non-public Fund’s providing paperwork, which have to be reviewed fastidiously previous to investing.

Oakpoint Options, LLC, member FINRA, SIPC

© Gator Capital Administration, LLC



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