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Page 1 of 6 General Risks of Investing In Private Investment Funds (e.g., Hedge Funds)
WHEN CONSIDERING INVESTMENTS IN PRIVATE INVESTMENT FUNDS (“FUNDS”), SUCH AS HEDGE FUNDS AND FUNDS OF FUNDS, EACH INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME FUND PRODUCTS: USE LEVERAGE AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS; CAN BE ILLIQUID; ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS; MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION; ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS; OFTEN CHARGE HIGH FEES; AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.
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