Hedged Funds

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Hedged Directional Fund

Fund Overview

Fund Goal

To generate investment returns that are not highly correlated to the public securities markets.

Who Can Invest

Any family member who is an accredited investor. The initial minimum investment is $50,000.

Who Might Want to Invest

An investor who:

    • Is looking for consistent performance, and is willing to accept less upside return in years when the market indices are performing well in return for more downside protection in years when the market indices are performing poorly.
Strategy and Fund Description
This entity was formed on January 1, 2014 as part of Sedgwick’s hedge fund restructuring. One of the benefits of this restructuring is that it allows a greater number of family members to participate in a hedge fund investment strategy. In order to accomplish this, investors in Sedgwick Hedged Directional Fund, LLC, do not have discretion to allocate their investment between the two investments in this fund. Allocation decisions are made by the Managing Member of Sedgwick Hedged Directional Fund, LLC, Sedgwick Advisers, LLC, in consultation with an Advisory Board.

Hedged Directional Fund, LLC, currently holds these funds:

Pointer QP, LP and an equal blend of these three mutual funds: Boston Partners Long/Short Equity Institutional Fund, FPA Crescent and the Wells Fargo Absolute Return Fund.

Pointer QP, LP is managed by Pointer Management, LLC in Chattanooga, Tennessee. Pointer’s strategy is slightly more aggressive than Blackstone’s (see Sedgwick’s Absolute Return Fund). Pointer uses a “long/short” strategy, meaning that its underlying partnerships buy attractive stocks to make money as the stock price increases, but they also take short positions (i.e., sell borrowed shares) in stocks they expect to decline, planning to buy them back at lower prices.

The Hedged Directional Fund also allows an investment of up to 20% in the long/short equity mutual funds. This enables us to remain fully invested while ensuring adequate monthly liquidity for our investors. Otherwise, investors might have to wait two years before Sedgwick is allowed to redeem some of its investment in Pointer due to initial lock-ups in place. While every attempt is made to fulfill every withdrawal request, the Manager has the discretion to defer withdrawals from this fund until cash can be made available.

For investors interested in a long/short investment strategy but not wanting the administrative burden of more complex tax reporting, Sedgwick offers a long/short strategy in a mutual fund form (see “Long/Short Equity Fund”).