This letter is solely for the information of current and prospective investors in Mathers Associates (the “Fund”). This information is confidential and any dissemination, distribution or use of it (other than to evaluate your existing or prospective fund investment) is strictly forbidden.
This letter is neither an offer to sell nor a solicitation of an offer to buy any security. An offer may only be made by the Fund’s Confidential Offering Circular, which Elliot Zeelander Management, LLC (the “General Partner”) will provide only to qualified investors.
While many of the thoughts expressed in this letter are stated in a factual manner, the discussion reflects only the General Partner’s beliefs about the financial markets in which it plans to invest the Fund’s assets following its investment strategy. The Descriptions herein, including the descriptions of the Fund’s investment strategy, are in summary form, are incomplete and do not include all the information necessary to evaluate a Fund investment. Prospective investors should recognize that a Fund investment involves certain risks. Some of these risks are disclosed in the Fund’s Confidential Offering Circular under “Risk Factors.” Only by carefully reading and understanding the Confidential Offering Circular can the investor determine whether such risks, as well as the General Partner’s experience and compensation, conflicts of interests and other information contained therein are acceptable to it.
The strategies described represent the General Partner current intentions. For example, this letter may specifically identify certain existing or expected characteristics of the Fund’s portfolio. These are only general guidelines that the General Partner expects will be approximate given its current view of the market, but the Fund may not meet any of these characteristics and the General Partner’s market view will change over time.
The information in this letter was prepared as of the date hereof, and may be different as of the date you review it. The General Partner and its affiliates undertake no obligation to revise or update any statement in this letter for any reason.
While the General Partner believes that during the periods shown the Fund was managed with an investment philosophy and methodology similar to that described in the Fund’s Confidential Offering Circular and that will be used to manage the Fund in the future, future investments will be made under different economic conditions and in different securities. In addition, depending on conditions and trends in securities markets and the economy generally, the General Partner may vary the Fund’s composition and exposure, and pursue any objectives, employ any techniques or invest in any type of security that it considers appropriate and in the Fund’s best interests. Investors should not assume that their investments will be profitable or that they will experience returns in the future comparable to those discussed herein. Past performance is not necessarily indicative of or a guarantee of future results.
The performance data reflect investment results of a sample investor that has been invested in the Fund since inception. These results reflect reinvestment of interest, dividends and other earnings, and the deduction of brokerage commissions, dividends on short sales and other direct investment costs, the General Partner Credit Percentage and all other Fund expenses. Each investor’s actual performance results may vary substantially from the performance results shown, depending, for example, on the timing of that investor’s investments.
The Fund’s performance is shown compared to the S&P 500 Index, the Russell 2000 Index, the Nasdaq Composite Index and the Dow Jones Industrial Average. These indices are provided for comparative purposes, but only as an example of general U.S. large cap and small cap market performance during the period shown. The S&P 500 Index, one of the most widely used benchmarks of U.S. equity performance, consists of 500 large cap stocks chosen for market size, liquidity and industry group representation. Each stock’s weight in the S&P 500 Index is proportionate to the total market value of all outstanding shares of such stock. The Russell 2000 Index measures the performance of the small cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Nasdaq Composite Index contains over 4,900 companies and is a broad-based capitalization-weighted index of domestic and non-U.S. based Nasdaq national market and small cap stocks, and reflects the reinvestment of dividends. The Dow Jones Industrial Average includes 30 widely-held stocks of large capitalization companies. Unlike any of these indices, the Fund’s portfolio includes mostly private investments that are not publicly tradable, short sales, margin trading and non-U.S. securities, and is not as liquid as those indices. Moreover, the indices are not subject to Fund fees or expenses. Due to the differences between the composition of the Fund’s portfolio and each of these indices, the General Partner cautions potential investors that no such index is directly comparable to the performance of the Fund. The General Partner is not aware of any index that would be directly comparable. EZM’s inception date through current date is October 1, 2006 through September 30, 2018 as reflected in the graph.
For performance results shown herein through last year, the General Partner prepared the information based on the Fund’s audited financial statements. Although an independent accountant has audited the Fund’s financial statements, it has not compiled, reviewed or audited the foregoing performance results. Results for the current year are based on the Fund’s internal books and records, as maintained by the General Partner, and are subject to adjustment when the Fund’s financial statements for that year are audited.