{"id":3098,"date":"2014-03-07T00:00:00","date_gmt":"2014-03-07T05:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/"},"modified":"2017-12-22T14:31:47","modified_gmt":"2017-12-22T19:31:47","slug":"merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/","title":{"rendered":"Merrill Lynch Hedge Fund Investors Offered Opportunity To Exit The Endowment Fund With Substantial Losses"},"content":{"rendered":"<\/p>\n<p>According to recent SEC filings, the Endowment Master Fund LP, has offered investors an exit strategy from the hedge fund offering a new fund through a <a title=\"Private Placement Memorandum\" href=\"http:\/\/www.sec.gov\/Archives\/edgar\/data\/1320688\/000119312514060817\/d631727dex995.htm\"  target=\"_blank\">Private Placement Memorandum<\/a> (PPM) which will be used to liquidate the Fund.\u00a0 The Endowment Master Fund, LP was marketed heavily by Wall Street firms, including Merrill Lynch.\u00a0 The PPM describes the Offer as a like-kind exchange of investors\u2019 pro-rata interest of the portfolio holdings into a new PMF Fund, LP.\u00a0 \u00a0According to the SEC filings, dated February 20, 2014, \u201cthe PMF Fund, LP and the Endowment Master Fund, LP will be managed differently, with the PMF Fund, LP managed for purposes of orderly liquidation.\u201d<\/p>\n<p>For investors, the Offer provides little certainty because investors must choose whether to liquidate now without knowing the true value of the Fund which will be determined at a later date.\u00a0 `The Offer for the like-kind exchange expires March 19, 2014 which requires more than a leap of faith for investors in a hedge fund that has languished far behind the market returns.\u00a0 Investors must make an investment decision without knowledge of the value exchanged and how much will be realized during the liquidation period.\u00a0 According to the New York Times article, <a title=\"New York Times Article\" href=\"http:\/\/www.nytimes.com\/2012\/10\/31\/business\/endowment-fund-run-by-mark-yusko-limits-withdrawals.html?_r=0\"  target=\"_blank\">After Weak Returns, the Endowment Fund Limits Withdrawals<\/a>, the hedge fund, \u201cbegan to struggle in 2011, suffering losses of about 4.1 percent, after fees, compared with a gain of 2.5 percent by the S&amp;P 500.\u201d<\/p>\n<p><b>\u00a0<\/b>On February 24, 2014, a Thomson Reuters article underscores the effects of the substantial <a title=\"Hedge Fund\" href=\"https:\/\/www.silverlaw.com\/hedge-funds.html\"  target=\"_blank\">hedge fund<\/a> costs on the Funds dismal performance, \u201cEven for investors who stay with the fund, there will be high costs.\u00a0 They will not be permitted to ask for any money back this year.\u00a0 They will also be charged a 1 percent management fee and a 1 percent servicing fee.\u00a0 On top of that there will be the fund\u2019s underlying managers\u2019 1.3 percent management fee and a 16 percent of profits as an incentive fee.\u201d\u00a0 The article points to the hedge fund underperformance in 2013, \u201cwith the fund earning only 2.08 percent last year, dramatically trailing the Standard &amp; Poor\u2019s 32 percent gain.\u201d\u00a0 For Merrill Lynch customer\u2019s, \u201cIf investors accessed the Endowment Fund through Merrill Lynch they will have paid as much as a 2.5 percent upfront charge.\u201d<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/\"  title=\"Continue Reading Merrill Lynch Hedge Fund Investors Offered Opportunity To Exit The Endowment Fund With Substantial Losses\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to recent SEC filings, the Endowment Master Fund LP, has offered investors an exit strategy from the hedge fund offering a new fund through a Private Placement Memorandum (PPM) which will be used to liquidate the Fund.\u00a0 The Endowment Master Fund, LP was marketed heavily by Wall Street firms, including Merrill Lynch.\u00a0 The PPM [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[598,588,617,610,599,576],"tags":[131,562,545,536,280],"class_list":["post-3098","post","type-post","status-publish","format-standard","hentry","category-alternate-investments","category-finra-arbitration","category-hedge-funds","category-private-placement-memorandum","category-securities-arbitration","category-unsuitable-investment-advice","tag-finra-arbitration-2","tag-hedge-funds-2","tag-private-placement-memorandum-2","tag-sec-filings","tag-unsuitable-investment-advice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Merrill Lynch Hedge Fund Investors Offered Opportunity To Exit The Endowment Fund With Substantial Losses &#8212; 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March 7, 2014\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Silver Law Group\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Merrill Lynch Hedge Fund Investors Offered Opportunity To Exit The Endowment Fund With Substantial Losses &#8212; Securities Arbitration Lawyers Blog &#8212; March 7, 2014","description":"According to recent SEC filings, the Endowment Master Fund LP, has offered investors an exit strategy from the hedge fund offering a new fund through a &#8212; March 7, 2014","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/","twitter_card":"summary_large_image","twitter_title":"Merrill Lynch Hedge Fund Investors Offered Opportunity To Exit The Endowment Fund With Substantial Losses &#8212; Securities Arbitration Lawyers Blog &#8212; March 7, 2014","twitter_description":"According to recent SEC filings, the Endowment Master Fund LP, has offered investors an exit strategy from the hedge fund offering a new fund through a &#8212; March 7, 2014","twitter_misc":{"Written by":"Silver Law Group","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/#article","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/"},"author":{"name":"Silver Law Group","@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"headline":"Merrill Lynch Hedge Fund Investors Offered Opportunity To Exit The Endowment Fund With Substantial Losses","datePublished":"2014-03-07T05:00:00+00:00","dateModified":"2017-12-22T19:31:47+00:00","mainEntityOfPage":{"@id":"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/"},"wordCount":616,"keywords":["finra arbitration","hedge funds","private placement memorandum","sec filings","Unsuitable Investment Advice"],"articleSection":["Alternate Investments","FINRA Arbitration","Hedge Funds","Private Placement Memorandum","Securities Arbitration","Unsuitable Investment Advice"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/","url":"https:\/\/www.silverlaw.com\/blog\/merrill-lynch-hedge-fund-investors-offered-opportunity-to-exit-the-endowment-fund-with-substantial-losses\/","name":"Merrill Lynch Hedge Fund Investors Offered Opportunity To Exit The Endowment Fund With Substantial Losses &#8212; 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