General Risks of Investing in the SummitTX Funds
An investment in a SummitTX fund or funds (the “Fund” or “Funds” respectively) is speculative and involves a substantial degree of risk. There can be no assurance that the investment or risk management objectives of the Fund will be achieved or that the Fund will be profitable. In fact, the practice of short selling and the use of leverage, derivatives, futures and forward contracts, and other investment techniques employed by the Fund, in certain circumstances, increase the adverse impact to which the Fund's investment portfolio is subject.
The Fund may not be suitable for all investors and is intended for sophisticated investors who can accept the risks associated with its investments. An investment in the Fund does not constitute a complete investment program. Investors will not have recourse except with respect to the assets of the Fund. Prospective investors should consider, among others, the risk factors and potential conflicts of interest described in this section. All investors in the Fund should consult their own legal, tax and financial advisors prior to investing in the Fund.
An investor should not invest in the Funds unless it is prepared to lose all or a substantial portion of its investment.
Performance Information
Each SummitTX fund or funds (the “Fund” or “Funds”) 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 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. Current and prospective investors should not assume that the future performance of any 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.
Certain Risk Factors
An investment in a SummitTX Fund is speculative and involves a substantial degree of risk. There can be no guarantee that the investment or risk management objectives of a given Fund will achieve its respective objectives. In fact, the practice of short selling and the use of leverage, derivatives, futures and forward contracts, and other investment techniques employed by a Fund, in certain circumstances, increase the adverse impact to which the Fund's investment portfolio is subject.
An investment in a Fund may not be suitable for all investors and is intended for sophisticated investors who can accept the risks associated with its investments. An investment in a Fund does not constitute a complete investment program. Investors will not have recourse except with respect to the assets of the Fund. Prospective investors should consider, among others, the risk factors and potential conflicts of interest described in this section. All investors in the Fund should consult their own legal, tax and financial advisors prior to investing in the Fund.
Below is a non-exhaustive list of risk factors associated with an investment in a SummitTX Fund. For a more complete list, please refer to the risk factors described in the applicable Fund Memorandum:
Targeted Return and Hypothetical Performance Disclosures
Certain portions of the website and presentation materials may contain a pro-forma presentation of SummitTX’s performance (the “Pro-Forma Track Record”) in order to demonstrate the operation of the proposed incentive fee and Fund strategy during historic market conditions. SummitTX has prepared this Pro-Forma Track Record because SummitTX is an institutional investment adviser which markets to sophisticated investors whom SummitTX believes are able to understand the limitations and risks associated with the use of pro-forma performance and that providing such information is important context to assist investors in understanding the Fund’s strategy. Upon request, SummitTX will provide information on the criterial used and assumptions made in calculating pro-forma performance.
The targeted returns are hypothetical returns and 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 SummitTX and the conclusions are SummitTX’s opinions based on its own independent study. The return targets are supported by various quantitative measures including one or more of the following: 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/or 3) a forecast return calculated using a third-party risk model.
While SummitTX 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 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.
Alternative modeling techniques or assumptions might produce significantly different results and prove to be more appropriate. Past hypothetical, back-test or simulated results are neither indicators nor guarantees of future returns. In fact, there are frequently sharp differences between hypothetical, back-tested and simulated performance results and the actual results subsequently achieved. As a sophisticated investor, you accept and agree that there may be material differences between hypothetical, back-tested, or simulated performance results and actual results subsequently achieved by any investment strategy. As such, you agree to use such information only for the purpose of discussing with SummitTX your preliminary interest in investing in the Fund(s) described herein.
SummitTX does not undertake any obligation to update or provide to you any revisions to the information contained herein to reflect events, circumstances or changes in expectations after the date such information was derived, developed, reviewed or created by SummitTX.
Performance History & Comparison
Beginning January 2017 the hypothetical composite returns are calculated on equity, net of account expenses, net of all manager fees, net of stated SummitTX fees consisting of a 1% management fee and a 10% performance fee; for the period July 2015 - December 2016 hypothetical composite returns are calculated on equity, net of account expenses, net of manager performance fees, net of stated SummitTX fees consisting of a 2% management fee and 10% performance fee.
Correlations to the performance of the indices presented in this report (including, but not limited to the S&P 500 Index and the HFRI Equity Market Neutral Index) are shown for comparison purposes only. The securities included in those indices are not necessarily included in the portfolios of the Funds 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 the Funds and the returns of such indices may not be comparable.
Gross performance figures do not include the deduction of Fund level fees and expenses and do not represent the performance of any investor. An individual investor’s returns will be reduced by advisory fees and other expenses incurred in the management of its account.
The estimated net asset value (“NAV”), monthly return and the statistics derived therefrom are estimates of the NAV and other information based on information available to SummitTX at the time of calculation. This is only an estimate and the actual performance results will vary from this estimate. No responsibility or liability is or will be accepted by SummitTX as to the accuracy or completeness of the estimated NAV and monthly return information and SummitTX expressly.
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. Due to the differences between the Funds’ portfolios and the composition of the aforementioned indices, SummitTX 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 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 in which the 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 the 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 in which the 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 the Funds and the returns of such indices may not be comparable.