The following pertains to Passive Alpha Capital Management, L.P. and the Passive Alpha Five Hundred Master Fund, Ltd. Please read it the way we read our own analysis — completely, and without arguing with it.
Interests are offered through a master-feeder arrangement comprising the Passive Alpha Five Hundred Master Fund, Ltd. and its associated onshore and offshore feeders. The Master Fund pursues a multi-strategy systematic mandate across the full opportunity set of global markets. After exhaustive evaluation of that opportunity set, the Master Fund holds the broad American equity market. Both statements are true at once, and we see no tension between them.
Past performance is not indicative of future results. We do not report returns relative to a benchmark — we have never had occasion to look at one. The figures shown are what the position returned, gross of fees. Our fees are not nominal — see below — and the net experience differs accordingly.
We charge a full institutional fee schedule: 2.0% of assets annually and 20% of returns above a high-water mark. We are aware the resulting position is simple to describe; you are not paying us to describe it. You are paying for the apparatus that ruled out every other position — several petabytes of daily market data, a decade of factor research, regime modeling across rates, credit, foreign exchange, volatility, and cross-asset liquidity, and the discipline required to arrive at the same answer, verify it exhaustively, and stand behind it. The conclusion is inexpensive to state and very expensive to be certain of. We price the certainty, not the trade.
An investment in the Fund involves risk, including the risk of loss, identical in magnitude and character to the risk of owning the American equity market — because that is what it is. The Fund holds the shares of five hundred companies directly. Holding many companies diversifies away the risk of any single company; it does not diversify away market risk, which we hold deliberately and in full.
The Fund is available to qualified purchasers and eligible institutional investors. Access materials, the current offering memorandum, and the standing conclusion — which has not changed — are available on request.
This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Nothing herein is investment advice. It is, at most, the same advice, repeated.