Cache Advisors LLC Form CRS — Responses to Conversation Starters

This document provides Cache Advisors LLC's responses to the Conversation Starter questions included in our Form CRS (Client Relationship Summary). It is intended to help you understand our services, the fees you will pay, the conflicts of interest that arise from how we are compensated, and how to reach us. This document supplements, and should be read together with, our Form CRS and our Form ADV Part 2A Brochure for the Cache Advisors Long Short Program (the “Brochure”), both of which are available at adviserinfo.sec.gov and at usecache.com/legal.

Item 2: Relationships and Services 

Conversation Starter:  Given my financial situation, should I choose an investment advisory service? Why or why not?

Response: Whether the Cache Advisors Long Short Program is appropriate for you depends on your overall financial situation, your investment objectives, your tax situation, and your tolerance for risk and complexity. The Program is designed for high-net-worth investors who hold concentrated U.S. equity positions and are seeking to diversify those positions over time on a tax-aware basis. Clients are required to fund their accounts with a minimum of $1,000,000 in assets managed by Cache Advisors and may be required to maintain a minimum account balance as specified separately by our account custodian. Some models (typically the 175% and 200% Leverage Ratios) have higher minimums discussed in our Form ADV. The Program is not appropriate for every investor, and we encourage you to discuss your personal situation with a tax advisor and, if appropriate, an independent financial professional before enrolling.

If you do not have a concentrated stock position, are unwilling or unable to use leverage and short selling (in the Cache Long/Short Program), do not have a long investment time horizon, or prefer in-person, full-service financial planning, the Program may not be the right fit. The Cache Long-Only Equity Program is a 100% long, unlevered alternative for clients who want a separately managed account with index-tracking exposure but do not want short positions or margin borrowing.

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Conversation Starter:  How will you choose investments to recommend to me?

Response: We use a risk-tolerance questionnaire (“RTQ”) and information you provide through our digital onboarding process to recommend an Investment Model. The Cache Long/Short Program offers four risk-based Models with different leverage ratios (130%/30%, 145%/45%, 175%/75%, 200%/100%), each designed to track a benchmark you select. The Cache Long-Only Equity Program is a single 100%-long Model with no short positions and no leverage.

Cache Models are benchmarked to a specific index, such as the S&P 500, S&P 500 Growth, NASDAQ-100, and CRSP US Total Market, the MSCI EAFE Index, the MSCI Emerging Markets Index, the Bloomberg U.S. Aggregate Bond Index for fixed income exposure, or another index as agreed upon by Cache. The Client is required to select the underlying benchmark Index.

Within each Model, day-to-day investment decisions are made by an unaffiliated SEC-registered subadviser engaged by Cache. You are not bound by our recommended Model and may choose a different Model, benchmark, or transition plan, subject to our review and approval and the eligibility requirements set out in the Brochure.

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Conversation Starter:  What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?

Response:  Cache Advisors LLC has been registered with the SEC as an investment adviser since November 2022. Our investment, operational, compliance, and client-service personnel hold the licenses appropriate to their roles, which may include the Series 65 (Uniform Investment Adviser Law Examination) or Series 66 (combined Series 63/65) administered by the North American Securities Administrators Association (NASAA). Some personnel are also registered with our affiliated broker-dealer, Cache Securities LLC, and may have additional  FINRA-administered exams such as the Series 7 (General Securities Representative) and Series 24 (General Securities Principal).
Many of our investment, technology, and compliance professionals also hold relevant graduate degrees and industry certifications.  Cache professionals are available to provide educational information and account support through an online email system by sending an email to operations@usecache.com 

These licenses and qualifications signify that the individual has passed the corresponding regulator-administered examination and is permitted to perform the activities covered by the license, including providing investment advisory services. They are not a guarantee of investment performance. You can research our firm and our investment adviser representatives, including any licenses, registrations, and disciplinary history, free of charge at Investor.gov/CRS and at adviserinfo.sec.gov.

Item 3: Fees, Costs, Conflicts, and Standard of Conduct 

Conversation Starter: Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

Response: Please note that the Cache Advisors Long Short Program has a $1,000,000 minimum for new accounts, so a $10,000 deposit alone would not meet the eligibility threshold to open an account. The example below is illustrative only and assumes you are an existing eligible Client adding $10,000 to an already-funded account.

On a $10,000 contribution, the full $10,000 is invested into your account. Cache deducts its Management Fee directly from your account in arrears each month based on the daily market value of your account. The annualized Management Fee depends on the Model you select and ranges from 0.20% (Cache Long-Only Equity Model) to 1.00% (Cache Long/Short 200% Long / 100% Short Model), with intermediate tiers at 0.35% (Deleverage 115%/15%), 0.50% (130%/30%), 0.60% (145%/45%), and 0.75% (175%/75%).

Worked examples for the first full year on a $10,000 contribution, before any third-party costs:

• Cache Long/Short 130%/30% Model (0.50% annual): approximately $50 in Management Fee.
• Cache Long/Short 200%/100% Model (1.00% annual): approximately $100 in Management Fee.

In addition to the Management Fee, you will pay third-party costs that are not part of our fee, including Schwab custodial and brokerage charges, margin and short-borrow costs, ETF expense ratios on any underlying funds you hold (which can be material for international and fixed income ETFs), wire and transfer fees, and any taxes or regulatory fees on your transactions. These costs reduce the amount of money you make on your investments over time. For more details, please see Item 5 (Fees and Compensation) of our Brochure.

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Conversation Starter: How might your conflicts of interest affect me, and how will you address them?

Response: Like any advisory firm, we have business arrangements that create conflicts of interest with you. The principal conflicts and how we mitigate them are summarized below.

• Higher fees on higher-leverage Models. The Cache Long/Short Models charge a higher annualized Management Fee at higher leverage tiers (e.g., 1.00% at 200%/100% vs. 0.50% at 130%/30%). We mitigate this by recommending a Model based on your RTQ responses and by offering the optional Deleverage Election feature, which automatically steps down both the leverage ratio and the corresponding Management Fee as the portfolio generates sufficient tax losses, without requiring further client action.
• Asset-based custodial benefits. Our custodian, Charles Schwab & Co., Inc., provides Cache with research, technology, transition-fee reimbursements, and other support based in part on the aggregate assets our clients custody at Schwab. This creates an incentive for us to direct client assets to Schwab. We mitigate this by requiring Investment Committee oversight of execution quality, by maintaining the right (through our subadviser) to trade away when better execution is available elsewhere, and by disclosing these arrangements in Items 12 and 14 of our Brochure.
• Cache-affiliated products. Cache and its affiliates also serve as the investment adviser to one or more privately offered exchange funds (“Exchange Funds”) that are not registered under the Investment Company Act. We do not provide advice on, recommend, or monitor your investments in those Exchange Funds through this Program; that activity is governed by separate documentation. We disclose these affiliations in Items 4 and 10 of our Brochure.

Item 4: Disciplinary History 

Conversation Starter: As a financial professional, do you have any disciplinary history? For what type of conduct?

Response No. Neither Cache Advisors LLC nor any of our investment adviser representatives has any legal or disciplinary history that is material to a prospective client's evaluation of our advisory business or the integrity of our management. You can verify this and research our financial professionals' backgrounds, free of charge, at Investor.gov/CRS and at adviserinfo.sec.gov.

Item 5: Additional Information 

Conversation Starter: Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer?

Response: The Cache Advisors Long Short Program is primarily a digital advisory program. Day-to-day support is delivered primarily through our online portal and by email at operations@usecache.com or  by phone or chat. That person will provide education and administrative support about the product, but will not offer product recommendations.

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Conversation Starter: Who can I talk to if I have concerns about how this person is treating me?

‍Response: If you have concerns about how an individual is treating you, you can request to speak with a manager of Cache who can further address your concerns, or the compliance team at compliance@usecache.com