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The Firm

Private Advisors is dedicated to the management of alternative assets and has been investing exclusively in hedge funds and private equity funds for its clients since 1997. The firm was established by Lou Moelchert, who managed the University of Richmond Endowment (the "Endowment") for 30 years and began making significant investments in alternatives in the early 1980s. Today, Private Advisors has fully dedicated private equity and hedge fund teams. The firm's senior investment professionals have diverse investment backgrounds and average more than 13 years in the industry. Several members of the hedge fund investment team have had prior experience working for direct hedge funds, which gives them valuable perspective when evaluating managers. The firm has a disciplined culture of compliance and has been an SEC-registered investment advisor since 1998. Transparency, open communication, access to senior decision makers and education are central components of our investor-focused approach.

The firm's investment philosophy has not changed over the years and maintains a primary focus on preserving capital and achieving strong, risk-adjusted returns relative to traditional and other alternative investments over time. Our investment professionals seek out fundamental and value-oriented strategies and managers that are not overly crowded. Ultimately, Private Advisors relies on hands-on due diligence by senior professionals to achieve investment objectives, and we believe that the relationships we have with our managers and our thoughtful, forward-looking strategy research are among our biggest advantages.

The Funds

Private Advisors Alternative Strategies Funds seek to generate profits by investing with highly skilled, research focused hedge fund managers that are able to add alpha through both long and short security selection and strategy allocation. The Funds' objectives are to seek long-term capital appreciation above equity returns over a full market cycle with volatility that is lower than that of the equity market and returns that demonstrate a low correlation to both traditional equity and fixed-income markets. To achieve these objectives, the Funds will invest in multiple hedge fund strategies including equity, credit, and other diversifying strategies. This offering combines Private Advisors' expertise across asset classes; therefore, allocations will vary depending on the team's forward-looking assessment of opportunities and risks across strategies.

Alternative strategies are complex to analyze and time-intensive to manage. Therefore, Private Advisors offers the following advantages:

  • A long and consistent track record in managing hedge fund of funds.
  • An experienced team with diverse investment backgrounds.
  • A high ratio of investment professionals to underlying funds facilitating a deep understanding of managers.
  • Investments with both difficult-to-access, well-established managers and emerging managers.
  • Key professionals that have broad ownership in the firm and significant investments in the Funds.
  • An intense focus on capital preservation.
  • An investor-focused approach with an emphasis on transparency.
  • A compliance-centric culture (SEC registered since 1998).



IMPORTANT DISCLOSURES AND KEY RISK FACTORS

This is not an offering to subscribe for shares of Private Advisors Alternative Strategies Master Fund ("Master Fund") or Private Advisors Alternative Strategies Fund ("Feeder Fund") (collectively "Funds"), and is intended for informational purposes only. Copies of the Prospectus may be obtained online at mainstayinvestments.com/privateadvisors or by contacting Private Advisors at 888-207-6176. Past performance does not guarantee future results.

The recently organized Funds are Delaware statutory trusts that are registered under the Investment Company Act of 1940 as amended ("1940 Act"), non-diversified, closed-end management investment companies and shares of the Funds are registered under the Securities Act of 1933, as amended "Securities Act." An offering can only be made by delivery of the Prospectus to "eligible investors" as described in the Prospectus. The Funds are structured as "master-feeder" funds. Accordingly, the Feeder Fund invests substantially all of its assets in the Master Fund. Generally only investors that satisfy the definitions of "accredited investor" as defined in Regulation D under the Securities Act will be eligible investors. The Master Fund invests in private investment funds or hedge funds. Hedge funds are speculative investments and are not suitable for all investors, nor do they represent a complete investment program.

Hedge Funds can be highly volatile, carry substantial fees, and involve complex tax structures. Investments in the Funds involve a high degree of risk, including loss of entire capital. The hedge 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 Funds provide limited liquidity, and shares in the Funds are not transferable. Liquidity will be provided only through repurchase offers made by the Funds from time to time, generally on a quarterly basis upon prior written notice.

The success of the Funds is highly dependent on the financial and managerial expertise of its principals and key personnel of the Funds' Sub-Advisor, Private Advisors, LLC ("Sub-Advisor"). Although the Sub-Advisor expects to receive detailed information from each hedge fund on a regular basis regarding its valuation, investment performance, and strategy, in most cases the Sub-Advisor has little or no means of independently verifying this information. The hedge funds are not required to provide transparency with respect to their respective investments. By investing in the hedge funds indirectly through the Funds, investors will be subject to a dual layer of fees, both at the Fund and hedge fund levels. Please see the Prospectus for a detailed discussion of the specific risks of the Funds and other important considerations.

Investors should consider the Funds' investment objectives, risks, charges, and expenses before investing. The Prospectus, which contains this and other information about the Funds, should be read carefully before investing. An investment in the Funds is not appropriate for all investors and is not intended to be a complete investment program. The Funds are designed as long-term investments and not as trading vehicles.

There can be no assurance that the Funds' investment objectives will be met.


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