I have read the disclosure statement below, please proceed to The Midway Group website. YES The Midway Group Disclosure Statement
Structure of Midway and the Midway Funds
The Midway Group, LP (“Midway”) is a Delaware limited partnership and serves as the investment manager to Midway Market Neutral Fund LLC, a Delaware limited liability company which began trading in May 2001 (the “Midway Market Neutral Fund”, the “Domestic Fund” or the “Fund”), Midway Market Neutral International Fund,, Ltd. (the “Offshore Fund”) , Midway Market Neutral International Master Fund, Ltd. (the “Master Fund”), and Midway Market Neutral Institutional Fund, LLC (the “Institutional Fund”), each a Cayman Islands exempted company. The Domestic Fund invests into the Institutional Fund. The Domestic Fund, the Institutional Fund, and the Offshore Fund invest substantially all of their investable assets, through a master feeder structure, in the Master Fund. The terms “Midway Funds” or “Funds” when used herein, refer collectively to the Domestic Fund, the Institutional Fund, the Offshore Fund and the Master Fund. Neither the Midway Funds nor interests in any of the Funds are registered under the U.S. Securities Act of 1933 or the Investment Company Act of 1940, as applicable and as such are not subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors.
Important Disclosures Pertaining to Performance and Investment in the Funds
Except to the extent expressly stated otherwise, all performance figures and/or data derived from performance presented herein is for the Domestic Fund. Performance is presented net of expenses, a 20% performance fee and the highest actual management fee charged at the time and assumes reinvestment of income. Effective March 1, 2005, the management fee increased from 1.5% to 2.0% for Class B. The management fee for Class A, generally not offered” remains at 1.5% [The rate of return is calculated on a “time weighted” rate of return basis, which minimizes the effect of cash flows on the investment performance of the Fund.] While annual performance has been audited all monthly performance and/or data derived from monthly performance is unaudited and as such its accuracy cannot be guaranteed. In addition, performance for 2014 will be, but as of the date hereof, has not been audited.
Past performance in no assurance of future results. All security transactions involve substantial risk of loss.
The material presented is compiled from sources thought to be reliable, including in certain instances, from outside sources, but accuracy and completeness cannot be guaranteed. Any opinions expressed herein reflect the judgment of Midway at this date and are subject to change. The Funds are under no continuing obligation to update this presentation, and the delivery of this presentation to the recipient does not constitute a representation that the information contained herein will be correct and/or complete subsequent to the date set forth on the cover page of the presentation.
Index and benchmark performance, if any, are presented for illustration purposes only. The Funds do not intend to track any benchmark or index. Information presented herein pertaining to the Midway IO Index (MIOITM), reflects a proprietary index created and updated monthly by Midway.
Risk Management and/or Projections
Except to the extent specifically stated otherwise, all risk information, including historical information, presented herein reflects model-based projections based on data and/or the Fund portfolio that was current as of the historical date for which such information is presented. Past hypothetical projections do not guarantee future actual results. Hypothetical results may have inherent limitations. No representation is being made that any user of Midway’s model will or is likely to achieve results similar to those shown. Back-tested results do not represent actual results and should not be interpreted as an indication of such. All projection models are based on inherent assumptions which Midway believes are accurate. However, if any of the assumptions proves to be inaccurate, the model outcomes will necessarily change.
Hypothetical projections are generally prepared with the benefit of hindsight. In addition, hypothetical investment does not involve financial risk, and no hypothetical investment record can completely account for the impact of financial risk in actual investing. For example, the ability to withstand losses or to adhere to a particular investment strategy in spite of investment losses are material points which can also adversely affect actual investment results. There are numerous other factors related to the markets in general or to the implementation of any specific investment strategy which cannot be fully accounted for in the preparation of hypothetical or model results and all of which can adversely affect actual results.
No representation is made that Midway’s or the Fund’s risk management process or investment objectives will or are likely to be achieved or successful or that the Fund or any investment will make any profit or will not sustain losses.
Investment in the Midway Funds
The Funds’ investments are selected by, and will vary in the sole discretion of, Midway and are subject to availability and market conditions, among other things. Midway has broad discretion to increase or decrease industry and sector exposure in the Funds. Thus, while industry and sector exposures and leverage rates presented are accurate as of the date of this presentation, such ranges may vary widely from time to time. The descriptions herein of the Funds’ investments, investment process, or investment strategies and styles may not be fully indicative of any present or future investments, and may be changed in the discretion of Midway. The Funds may invest in illiquid securities and foreign securities and may employ a variety of investment techniques such as options trading, the use of leverage, and short selling strategies, each of which involves special investment and risk considerations. Interests in the Funds are illiquid and generally nontransferable; therefore investors must be able to bear the risk of an investment in any of the Midway Funds for an indefinite period of time. Investments in the Funds are intended for sophisticated investors only, as defined by law. Certain investors in the Funds may be subject to preferential terms.
Nothing contained herein should be construed as an offer to sell or solicitation of an offer to buy or sell any security or investment strategy or a recommendation as to the advisability of investing in, purchasing or selling any security or investment strategy, which may be made only in the Funds’ formal Confidential Private Placement Memorandum. The Offering Documents, which include information as to certain risks, supersede the information contained herein and should be requested and carefully reviewed by persons interested in investing in any of the Funds, as they are the sole documents on which a potential investor is entitled to rely in evaluating such investment. Further, nothing contained herein is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
This presentation has been prepared by Midway for informational purposes only and is intended for distribution only to the person to whom Midway originally provided it. Distribution of this document to any person other than the person to whom this information was originally delivered and/or to such person’s advisors is unauthorized and any reproduction of these materials, in whole or in part, or the disclosure of any of the contents, without the prior consent of Midway in each such instance is prohibited. These materials are not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to local law or regulation.
I have read the disclosure statement below, please proceed to The Midway Group website. YES