Risks and Important Considerations
Notes Regarding Website Usage
This website provides information about various alternative investment products (Investment Products) marketed by Altegris Investments, LLC. (Altegris) for which you meet certain qualifications. It is intended to provide you with information about those Investment Products and to educate you about the nature of the Investment Products Altegris offers to its clients and prospective clients. Altegris acts as a broker dealer or introducing broker in offering and selling the alternative investment products shown on this website. As such it is subject to various conflicts of interest including those described below. Altegris does not hold itself out as an investment adviser in connection with any of the information provided on this website and you and your advisers are responsible for selecting and analyzing the Investment Products you purchase and your individual allocations among those Investment Products. Not every Investment Product appearing on this website is necessarily suitable for investment by you, and therefore nothing appearing on this website should be construed as an offer to sell securities or as a solicitation for a managed futures account. No recommendation will be made before Altegris determines that you are suitable for a particular Investment Product based on the financial and other information you have provided to Altegris.
This website is intended for your exclusive use. You should not share the information on this website with any other parties.
Risks of Investing in Hedge Funds and Managed Futures—
PLEASE READ THIS CAREFULLY
When considering alternative investments, such as hedge funds and managed futures, you should consider various risks including the fact that some hedge fund and managed futures 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.
With respect to alternative investments, such as hedge funds and managed futures, in general, you should be aware that:
- Returns from some alternative investments, including hedge funds and managed futures, can be volatile
- You may lose all or portion of your investment
- With respect to single manager products the manager has total trading authority. The use of a single manager could mean a lack of diversification and higher risk
- Many alternative investments that include hedge funds and managed futures are subject to substantial expenses that must be offset by trading profits and other income. A portion of those fees is paid to Altegris
- Trading may take place on foreign exchanges that may not offer the same regulatory protection as US exchanges
With respect to an investment in a hedge fund or managed futures fund, you should be aware that:
- There is often a lack of transparency as to the fund's underlying investments
- With respect to hedge fund of funds, the fund's manager has complete discretion to invest in various sub-funds without disclosure thereof to you or to us. Because of this lack of transparency, there is no way for you to monitor the specific investments made by the hedge fund or to know whether the sub-fund investments are consistent with the hedge fund's historic investment philosophy or risk levels
- A hedge fund of funds invests in other funds and fees are charged at both the fund and sub-fund level. Thus the overall fees you will pay will be higher than you would pay by investing directly in the sub-funds. In addition, each sub-fund charges an incentive fee on new profits regardless of whether the overall operations of the fund are profitable
- There is no secondary market for fund interests. Transfers of interests are subject to limitations. The fund's manager may deny a request to transfer if it determines that the transfer may result in adverse legal or tax consequences for the fund
A hedge fund's Offering Memorandum or a money manager's Disclosure Document describes the various risks and conflicts of interest relating to an investment and to its operations. You should read those documents carefully to determine whether an investment is suitable for you in light of, among other things, your financial situation, need for liquidity, tax situation, and other investments.
Keep in mind that the past performance of any investment is not necessarily indicative of future results. You should only commit risk capital to any Investment Product. Alternative investment products, including hedge funds and managed futures, are not for everyone and entail risks that are different from more traditional investments. You should obtain investment and tax advice from your advisers before deciding to invest.
Certain Conflicts of Interest:
- In working with clients, Altegris acts in its capacity as a SEC-registered Broker-Dealer. Although we may give advice that is incidental to our brokerage services, we are not an Investment Adviser. Altegris has entered into selling agreements with all of the investment products that we offer (including investment products of our affiliates), pursuant to which we are paid fees by the investment products or their managers in connection with sales we make. This enables us to offer products without charging fees above those charged by the products or managers
- In addition, Altegris Clearing Solutions, LLC may act as an introducing broker for individually managed futures accounts, and may act as an introducing broker to commodity pools sponsored by Altegris Advisors and sold by Altegris. As such, the Altegris companies may receive a portion of the commodity brokerage commissions they pay in connection with their futures trading or receive a portion of the interest income (if any) earned on an account's assets
- Certain CTAs (Commodity Trading Advisors) may also pay Altegris Clearing Solutions a portion of the fees they receive from accounts introduced to them
- Fees vary among different Investment Products and may be high. With respect to managed futures products, you are responsible for negotiating both brokerage commission rates and the amount of interest income credited to your account, as well as any management and performance fees you pay to any CTA trading your account. As a result, there exists a conflict between Altegris Clearing Solutions interest in maximizing the commissions and fees paid by you (in which it will participate) and your interest in minimizing those commission and fees.
- Altegris, its affiliates, principals and employees may own, or may purchase, an interest in the Investment Products shown on this website.
- The compensation Altegris and its affiliates receive from various products it sells, its profits, and its salespersons' compensation, may vary by product and over time
Before seeking any advisor's services or making an investment in a hedge fund or managed futures fund, investors must read and examine thoroughly the respective Disclosure Document or Offering Memorandum.
Altegris selected the Investment Products displayed on this website from the alternative Investment Products it markets and sells and for which it is paid. The universe of Investment Products is substantially larger than those offered by Altegris and contains other Investment Products that may offer lower fees, higher returns and/or lower risk. Some Investment Products shown on this website may be sponsored by Altegris or its affiliates and may be subject to various conflicts of interest and high fees, a portion of which will be paid to Altegris and its employees.
If you were referred to Altegris by John Mauldin through Millennium Wave Advisors, LLC (MWA) or Millennium Wave Securities, LLC, (MWS) (each of which do business as Millennium Wave Investments) please note the following:
John Mauldin is the President of MWA, which is an investment advisory firm registered with multiple states. John Mauldin is a registered representative of MWS, a FINRA registered broker-dealer, commodity pool operator (CPO), commodity trading advisor (CTA) and an introducing broker (IB) registered with the CFTC, and a member of the NFA in such capacities. Altegris pays MWS 1/3 of fees Altegris receives from funds it sells to clients referred to Altegris by MWS. Additionally, Altegris pays MWS up to 1/3 of the commodity brokerage commissions and interest income Altegris receives from managed futures accounts of clients referred to Altegris by MWS.
Information presented on this site has been obtained from sources that Altegris believes to be reliable. However, Altegris has not and cannot verify the accuracy of such information, and potential investors should be aware that such information is subject to change without notice.
Not all products and services described on this website are available in all jurisdictions, and certain investments may not be suitable for all investors. Certain investment products that are available to U.S. persons have not been registered with any federal or state regulator, and as a result are available only to certain qualified investors. Qualifications vary from product to product.
Any information on this website referring specifically to investment products offered by Altegris is only available to view by qualified persons with a username and password obtained by registering and qualifying. By registering you understand that Altegris may, at its sole discretion, send you information (electronically or otherwise) on various products it offers that it believes are suitable for you and you expressly consent thereto. You may notify Altegris in writing, at any time to remove your name from its product distribution list. The information on this website should not be construed as investment advice. You should obtain independent investment and tax advice before deciding to invest.
Past results are not indicative of future results. There is risk of loss when investing in managed futures or hedge funds.
The information contained in this website may not be reproduced, reorganized or used to create any financial product including an index. This information is for informational purposes only and is provided on an "as is" basis. The user assumes the entire risk of its use. Altegris and its affiliates expressly disclaim all warranties of originality, merchantability, of fitness for any particular purpose. Without limiting the foregoing, in no event will Altegris and its affiliates or employees have any liability in connection with the use by any person of the information or data presented in this website.
The information herein is provided by the Altegris Fund's manager, general partner or managing member in connection with the offering of the Altegris Fund, and its formatting and presentation are drawn from materials, including the Altegris Fund's offering materials, previously reviewed and approved by the Altegris Fund's manager, general partner or managing member. No part of this presentation contains opinion or analysis of Altegris Investments, LLC, an affiliated broker dealer.