Cache Advisors Long Short Client Disclosure Document

The Cache Long Short Program is sponsored by Cache Advisors, LLC (the “Advisor”) and includes sub-advisory services provided by Brooklyn Investment Group, LLC (“Brooklyn” or the “Subadviser”), an SEC-registered investment adviser. The Program involves a long/short investment strategy that includes holding long equity positions and selling securities short. This approach involves risks that may result in losses, including, but not limited to, the following: Additional information regarding Brooklyn’s investment strategies, risks, and business practices is available in Brooklyn’s Form ADV, which has been provided to the Client.

I understand, acknowledge,  and agree that investing in a Long Short Program contains\  but is not limited to the following risks: 

• Market risk, which can lead to loss due to the impact of general market movements.
• Idiosyncratic risk due to company-specific factors that are generally not correlated with the broad market environment can lead to loss.
• Short-sale risk can amplify losses because the stock price appreciates.;
• Borrow risk can result in a “short squeeze,” meaning that securities borrowed with a short sale need to be returned to the securities lender on short notice and at a time when other short sellers of the security are receiving similar requests, compelling the Client to buy such securities on the open market at prices significantly in excess of the proceeds received, which can lead to loss; 
• Leverage risk can cause unexpected interactions between longs and shorts or an improperly hedged portfolio, and/or 
• Borrow rate risk for stocks that are thinly traded or less available for other reasons can lead to loss.

I further understand, acknowledge, and agree that: 

• Cache Advisor has informed me that the tax treatment of the long/short strategies may constitute a deferral rather than permanent savings, cannot be guaranteed, and may or may not be suitable for all individuals to pursue.
• I understand that neither Cache Advisors nor Brooklyn Investment Group can offer tax advice, and that I understand it is my responsibility to consult with my own qualified tax advisors with respect to the appropriateness of this strategy and likely tax treatment of the long/short strategy in my particular circumstances.

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