Hatteras Core Alternatives Fund
- Complete Alternative Investment Solution
Designed as a complete alternative investment solution for qualified clients
- Mature Private Investment Portfolio
Potential for return enhancement through private investments diversified by vintage, manager, stage, strategy, and geography
- Hedged Investments
Potential risk mitigation through hedged investments diversified by manager, strategy, and geography
- Master Fund Assets: $554M
- Master Fund Inception Date: 01/01/2005
- Number of Underlying Funds: 165
- Investor Qualifications: >$2,100,000 net worth
- Minimum Investment: $1,000,000
- Subsequent Investment: $100,000
- Contribution Period: Monthly
- Lock-Up Period: 1 Year
- Liquidity: Quarterly Tender
As of June 30, 2017
Since 1994, Portfolio Advisors has managed private equity, private real estate and private credit investments while also seeking to minimize risk through prudent diversification and the careful selection of high quality investment managers. The firm invests on behalf of their clients and funds through primary partnerships, secondary purchases, co-investments and direct investments. Portfolio Advisors manages over $36 billion in assets, and has a global presence with offices in the U.S., Europe, and Asia.
|As of June 30, 2017||Month||YTD||1 Yr||3 Yr||5 Yr||10 Yr||Since Inception|
|Core Alternatives Fund, L.P.||-0.45%||2.77%||6.28%||0.83%||3.81%||0.82%||2.52%|
|Core Alternatives TEI Fund, L.P.||-0.46%||2.73%||6.24%||0.74%||3.68%||0.69%||2.37%|
|Core Alternatives Institutional Fund, L.P.||-0.44%||2.81%||6.39%||1.26%||4.26%||1.40%||2.13%|
|Core Alternatives TEI Institutional Fund, L.P.||-0.44%||2.80%||6.43%||1.25%||4.05%||1.24%||1.87%|
|HFRX Global Hedge Fund Index||0.21%||2.56%||6.00%||-0.35%||1.91%||-0.95%||0.76%|
|S&P 500 TR Index||0.62%||9.34%||17.90%||9.61%||14.63%||7.18%||8.30%|
|As of June 30, 2017||Quarter||YTD||1 Yr||3 Yr||5 Yr||10 Yr||Since Inception|
|Core Alternatives Fund, L.P.||1.29%||2.77%||6.28%||0.83%||3.81%||0.82%||2.52%|
|Core Alternatives TEI Fund, L.P.||1.26%||2.73%||6.24%||0.74%||3.68%||0.69%||2.37%|
|Core Alternatives Institutional Fund, L.P.||1.30%||2.81%||6.39%||1.26%||4.26%||1.40%||2.13%|
|Core Alternatives TEI Institutional Fund, L.P.||1.30%||2.80%||6.43%||1.25%||4.05%||1.24%||1.87%|
|HFRX Global Hedge Fund Index||0.89%||2.56%||6.00%||-0.35%||1.91%||-0.95%||0.76%|
|S&P 500 TR Index||3.09%||9.34%||17.90%||9.61%||14.63%||7.18%||8.30%|
Inception Date: Core Alternatives Fund and Core Alternatives TEI Fund 04/01/2005; Core Alternatives Institutional Fund 01/01/2007; and Core Alternatives TEI Institutional Fund 02/01/2007. Inception dates for the indices coincide with the fund inception date listed in the chart.
Performance results and calculations after the Funds’ most recent fiscal year are unaudited. The principal value of the Funds will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original cost. Returns are net of all expenses of the Funds, including the management fee and incentive allocations, and reflect reinvestment of all distributions, if applicable. Returns do not reflect payment of the 2% early redemption fee or upfront placement fees, which could be up to 2% for Core LP and Core TEI and 6% for Core Institutional and Core TEI Institutional, if applicable, which would reduce the returns shown above. Past performance does not guarantee future results and current performance may be lower or higher than the figures shown. To obtain performance information current to the most recent month-end, please call 866.388.6292. The net expense ratios shown below are the expenses partners will expect to incur through the Core Alternative Fund’s investment in the Master Fund, Core Alternatives Institutional Fund’s investment in the Master Fund, the Core TEI Fund’s investment in the Offshore Fund and the Master Fund, and the Core TEI Institutional Fund’s investment in the Offshore Fund and the Master Fund. The net expense ratio and total expense ratio for the Hatteras Core Alternatives Fund, L.P. is 2.44% and 6.93%, respectively. The net expense ratio and total expense ratio for the Hatteras Core Alternatives TEI Fund, L.P. is 2.63% and 7.12%, respectively. The net expense ratio and total expense ratio for the Hatteras Core Alternatives Institutional Fund, L.P. is 1.66% and 6.15%, respectively. The net expense ratio and total expense ratio for the Hatteras Core Alternatives TEI Institutional Fund, L.P. is 1.75% and 6.24%, respectively. The total expense ratio for all funds includes Acquired Fund Fees and Expenses of 4.49%. Please see the current prospectus for detailed information regarding expenses of the Funds.
This is not an offering to subscribe for units in any fund and is intended for informational purposes only. An offering can only be made by delivery of the Prospectus to “qualified clients” within the meaning of U.S. securities laws. The Hatteras Core Alternatives Fund, L.P.; the Hatteras Core Alternatives TEI Fund, L.P; the Hatteras Core Alternatives Institutional Fund, L.P.; and the Hatteras Core Alternatives TEI Institutional Fund, L.P. (collectively referred to herein as the “Hatteras Core Alternatives Fund” or the “Fund”) are Delaware limited partnerships that are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as non-diversified, closed-end management investment companies whose units are registered under the Securities Act of 1933, as amended. The Hatteras Core Alternatives Fund is a fund of alternative investments. As such, the Fund invests in private hedge funds and private equity investments. Hedge funds are speculative investments and are not suitable for all investors, nor do they represent a complete investment program. A hedge fund can be described generally as a private and unregistered investment pool that accepts investors’ money and employs hedging and arbitrage techniques using long and short positions, leverage and derivatives, and investments in many markets.
Key Risk Factors
The Fund, through an investment in the Master Fund, will invest substantially all of its assets in underlying funds that are generally not registered as investment companies under the 1940 Act and, therefore, the Fund will not have the benefit of various protections provided under the 1940 Act with respect to an investment in those underlying funds. The Fund can be highly volatile, carry substantial fees, and involve complex tax structures. Investments in the Fund involves a high degree of risk, including loss of entire capital. The underlying funds may engage in speculative investment strategies and practices, such as the use of leverage, short sales, and derivatives transactions, which can increase the risk of investment loss. The Fund provides limited liquidity, and units in the Funds are not transferable. Liquidity will be provided only through repurchase offers made by the Fund from time to time, generally on a quarterly basis upon prior written notice.
The success of the Fund is highly dependent on the financial and managerial expertise of its principals and key personnel of the Fund’s investment manager. Although the investment manager for the Fund expects to receive detailed information from each underlying fund on a regular basis regarding its valuation, investment performance, and strategy, in most cases the investment manager has little or no means of independently verifying this information. The underlying funds are not required to provide transparency with respect to their respective investments. By investing in the underlying funds indirectly through the Fund, investors will be subject to a dual layer of fees, both at the Fund and underlying fund levels. Certain underlying funds will not provide final Schedule K-1s for any fiscal year before April 15th of the following year. Those funds, however, will endeavor to provide estimates of taxable income or losses with respect to their investments. Please see the Prospectus for a detailed discussion of the specific risks disclosed here and other important risks and considerations.