Frequently Asked Questions (FAQs)
Frequently Asked Questions (FAQs)
1.1 What is Ebsiron Hedge Fund?
Ebsiron Fund is a boutique hedge fund specializing in short-term algorithmic trading strategies focused on U.S. equities and leveraged ETFs, designed to capture alpha through systematic, high-frequency signals.
1.2 Who manages the fund?
The fund is managed by a portfolio manager with deep expertise in market microstructure, volatility, and algorithmic trading.
1.3 Where is the fund domiciled?
The fund is domiciled in Delaware, operating under applicable regulatory frameworks.
2.1 What is the fund’s investment strategy?
The fund employs proprietary algorithms developed over more than a decade to capture short-term opportunities in highly liquid U.S. securities, using attributes such as volatility, momentum, and other signals. Our fund is best suited for niche, capacity-constrained strategies. We also deploy capital opportunistically when short-term market inefficiencies arise.
2.2 What is the target return?
The fund aims to deliver attractive risk-adjusted returns using its proprietary strategies.
2.3 How does Ebsiron measure performance?
Performance is measured net of operational expenses and bench marked against the broader US markets and other custom risk-adjusted Hedge fund indices.
2.4 Can I access historical performance data?
Yes, historical performance data is available upon request, subject to confidentiality agreements.
2.5 What instruments does the fund trade?
The fund trades highly liquid, exchange-listed instruments, including equities and ETFs.
2.6 Do you offer forex, cryptocurrency, or blockchain strategies?
No, Ebsiron Fund does not currently offer trading strategies in forex, cryptocurrency, or blockchain. Our focus is on U.S.-listed securities and leveraged exchange-traded funds (ETFs).
3.1 Who can invest in Ebsiron Fund?
US based investors who meet Qualified Clients status are eligible to join. Qualified Client status requires either a net worth exceeding $2.2 million (excluding the primary residence) or at least $1.1 million in assets managed with our fund.
Non-US based investors, net-worth nor assets under management are used as qualifying criteria.
Prospective Investors can be igh net worth individuals (HNWI), Family offices, Businesses, RIAs, IARs, Retirement plans, Trusts and institutions.
3.2 Can I invest through IRA, Solo 401K, Trust, or LLC?
Yes, subject to compliance and custodial approvals. Please seek counsel from your tax and legal advisors on how to route your investment from these pre-tax and post-tax accounts.
3.3 Is the fund available via custodians or feeders?
Upon request the Fund can partner with select custodians, such as Fidelity, Schwab, and Pershing, which may simplify subscription and reporting for investors who already custody assets there. In addition, the Fund is exploring partnerships with feeder fund platforms such as iCapital, CAIS, or private bank feeders, which can provide access to the Fund at lower minimums through aggregated structures.
3.4 Can smaller investors participate?
Yes. Certain feeder funds and custodian platforms allow accredited investors to pool smaller amounts of capital to access the Fund’s strategies, while still meeting applicable accreditation requirements.
3.5 Can non-U.S. investors participate?
Yes, investors outside the U.S. (including overseas-based funds) may invest in the Fund. However:
You are responsible for understanding how U.S. tax laws apply to your investment, including withholding taxes, reporting requirements, and any filing obligations.
You must also comply with your home country’s rules regarding foreign investments, taxes, and reporting. We recommend consulting your tax and legal advisors.
3.6 Are there tax implications for overseas investors?
Yes. Investors are responsible for their own tax compliance, exposure in the U.S. and their home country. Please seek counsel from tax and legal advisors.
4.1 What is the minimum investment?
$250,000 with flexibility for strategic partners and RIAs aggregating capital.
4.2 What is the average investment size?
Investment sizes typically range from $250,000 to $5 million per account. These will be structured as one-time initial investments into a commingled fund. For strategic commitments, we may offer Separately Managed Accounts (SMAs).
4.3 How long is your capital committed for?
Capital is committed for a two-year term. Early withdrawal penalties will apply.
4.4 How are early withdrawal penalties calculated?
If capital is redeemed before the 2-year term expires, penalties apply as follows:
5% of the redeemed amount if withdrawn in Year 1
2.5% of the redeemed amount if withdrawn in Year 2
The penalty is applied to the redemption amount at the time of withdrawal (based on current NAV), not the original investment amount.
4.5 Why does the fund charge early withdrawal penalties?
Early withdrawal penalties help protect fund stability, support multi-year investment strategies, and ensure fairness among all investors.
4.6 How often can I redeem my investment?
Quarterly, with 45-day notice. Redemption gate limits will apply.
4.7 What are redemption gates?
Redemption gates are temporary limits a fund may place on withdrawals during periods of market stress or unusual volatility. They help the fund manage liquidity, protect remaining investors, and prevent forced selling of positions that could harm performance.
4.8 Are customized liquidity terms available?
No.
5.1 What is the fee structure?
Please contact us at info@ebsiron.com for detailed information regarding our fee structure.
5.2 Are there discounts or tiered fees?
Yes. For allocations above $1 million, fee discounts or tiered schedules may be offered at the Fund’s discretion and on a case-by-case basis.
6.1 How is risk managed?
The Fund manages risk through a combination of stop-loss protocols, position limits, scenario analysis, selective hedging using instruments such as put options or inverse ETFs, and independent third-party oversight. Investors should review the Fund’s offering documents for a full discussion of risks.
6.2 Is the fund audited?
Yes, annually by a nationally recognized audit and tax firm.
6.3 What regulatory oversight does the fund have?
The Fund is registered in California and complies with applicable state and federal regulatory requirements, including SEC and CFTC rules where relevant.
7.1 What reporting do investors receive?
Monthly performance, quarterly letters, and annual audited statements.
7.2 How does Ebsiron support RIAs & institutions?
With onboarding support, compliance documentation, white-labeled materials, SMA options, and aggregated reporting.
7.3 How can I access my reports and data?
Via a secure investor portal providing real-time access.
8.1 Who are the fund’s service providers?
The fund works with leading administrators, custodians, auditors, and legal advisors. Information can be shared upon signing non-disclosure agreement.
8.2 How are subscriptions processed?
Processed monthly based on cutoff dates and complete documentation.
9.1 What is a hedge fund?
A hedge fund pools investor capital to pursue returns using advanced strategies that often carry higher risk than mutual funds.
9.2 How is Ebsiron different from mutual funds?
Ebsiron uses complex strategies such as leverage and short-selling, which mutual funds typically cannot employ.
9.3 Can anyone invest?
No. Only investors who meet both Qualified Clients status and Accredited Investor status based on income or net-worth thresholds.
9.4 What fees will I pay?
Management fee plus performance fee, based on net profits.
9.5 How safe is my investment?
All investments involve risk. Ebsiron uses controls but cannot guarantee returns.
9.6 How will I know how my money is doing?
You’ll receive monthly and quarterly reports plus audited annuals.
10.1 Are SMAs available?
Yes, usually for allocations of $5 million or more.
10.2 How do you support due diligence?
By providing audited reports, compliance docs, risk analyses, and GP access.
10.3 Can institutions co-invest?
Yes, select partners may access co-investment opportunities.
10.4 What are liquidity terms for institutions?
Half yearly redemptions with 30-day notice; bespoke terms negotiable. Also see FAQ on early withdrawal penalties.
10.5 How is risk monitored & reported?
Risk is monitored through stop-loss protocols, position limits, and selective hedging using instruments such as put options or inverse ETFs. Investors should review the Fund’s offering documents for detailed information on risk monitoring and reporting.
10.6 What operational/compliance support do you offer?
Full onboarding, tax support, compliance reporting, and tailored communications.
11.1 Does Ebsiron consider ESG factors?
Ebsiron does not incorporate Environmental, Social, or Governance (ESG) criteria as part of its investment process. The fund’s strategies are driven primarily by market dynamics, quantitative analysis, and risk management considerations.
12.1 How does Ebsiron protect investor privacy?
Ebsiron maintains strict confidentiality over all investor information. We only collect data necessary for legal, regulatory, and operational purposes and do not disclose information to third parties except as required by law or service providers under confidentiality agreements.
12.2 What measures are in place to safeguard investor data?
We use secure systems with industry-standard encryption, access controls, and monitoring protocols. Investor data is stored and transmitted securely, and access is limited to authorized personnel only.
12.3 Does Ebsiron share investor information with third parties?
Investor information may be shared with service providers such as fund administrators, auditors, or legal counsel, but only under strict confidentiality agreements and solely for fund-related purposes.
12.4 How is communication with investors kept secure?
We use encrypted email and secure portals for sensitive communications, ensuring that reporting, capital account statements, and other confidential materials are transmitted securely.
12.5 How long does the Fund retain investor records?
Investor records are retained in accordance with applicable legal and regulatory requirements, generally for a minimum of five years, after which they are securely archived or destroyed.
12.6 Are investors’ personal financial details sold or used for marketing?
No. Ebsiron does not sell, lease, or use investor personal information for marketing purposes.
12.7 Do service providers handling investor data comply with data protection standards?
Yes. We engage only reputable service providers who follow strict data protection, cybersecurity, and regulatory compliance standards.
13.1 What risks should I be aware of?
The fund involves market risk, liquidity risk, and strategy-specific risks inherent in actively managed investment strategies. Investors should carefully review the Private Placement Memorandum (PPM) and other fund documents for a full discussion of risks before making any investment decision.
13.2 Are returns guaranteed?
No. Also past performance does not guarantee future results.
13.3 Does the Fund use leverage and what risks does that involve?
Yes, the Fund may use leverage to enhance potential returns. However, leverage also magnifies potential losses and can increase volatility. Please review the Fund’s Private Placement Memorandum (PPM) for detailed disclosures on leverage-related risks.
13.4 What risks are associated with derivatives?
The Fund may employ derivatives such as options or futures for hedging or return enhancement. Derivatives carry risks including counterparty risk, liquidity risk, and pricing complexity. Full details are outlined in the Fund’s offering documents.
13.5 How does market concentration affect risk?
If the Fund invests heavily in a particular sector, strategy, or set of instruments, performance may be disproportionately affected by events impacting that area. Diversification is managed prudently, but concentration risk remains.
13.6 What is liquidity risk?
Liquidity risk arises if investments cannot be sold quickly at or near their fair value, which could affect the Fund’s ability to meet redemption requests. Investors should be aware that hedge funds are generally less liquid than traditional investments.
13.7 Are there regulatory or compliance risks?
Yes. Changes in laws, regulations, or interpretations could impact Fund operations or investment strategies. Compliance risk is actively monitored, but cannot be eliminated.
13.8 What operational risks exist?
Operational risks include the potential for errors, systems failures, or third-party service provider issues. The Fund maintains policies and controls to mitigate these risks, though they cannot be entirely avoided.
13.9 How does the Fund manage risk overall?
The Fund employs portfolio monitoring, position limits, stress testing, and independent third-party oversight to help identify and manage risk exposures. Nonetheless, investing in hedge funds involves inherent risks that cannot be fully mitigated.
14.1 How do I get more information OR start investing?
Contact info@ebsiron.com