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F-01FENUL Capital Investment LP · Rule 506(c) offering

A quantitative, market-neutral fund

FENUL Capital Investment LP is a quantitative hedge fund managed by FENUL LLC. It is open only to accredited investors who are also qualified clients, as the SEC defines those terms.

Fund
FENUL Capital Investment LP
General partner
FENUL LLC
Open to
Accredited investors who are qualified clients
Before documents
Status verified
Send an inquiryRead the risks
Contents 7 sections

What the fund is

The fund holds long positions and short positions at the same time. The aim is to keep the portfolio's overall exposure to market direction, its beta, close to zero, so that results depend on the difference between the two sides more than on whether the market as a whole rises or falls.

Investment decisions come from systematic models: rules applied the same way each time, not one-off calls. Risk is managed at the level of the whole portfolio.

This page describes the approach in general terms only. The strategy, terms and risks are set out in full in the fund's confidential offering documents.

  • Quantitative: decisions come from systematic models
  • Market-neutral: long and short positions, aiming for beta close to zero
  • Risk managed at the portfolio level

Who can invest

The fund accepts only investors who are both accredited investors and qualified clients. Both are defined by the SEC:

Accredited investor

Defined in Rule 501(a) under the Securities Act. A person can qualify through income, through net worth (not counting a primary residence), or by holding certain professional certifications. Certain entities and trusts also qualify.

Qualified client

Defined in Rule 205-3 under the Investment Advisers Act. It applies because the general partner receives a performance allocation. It is a separate test from accredited status, and an investor must meet both.

Read the SEC's definition of an accredited investor (opens sec.gov in a new tab)

Status is verified before any investment

Under Rule 506(c), the fund must take reasonable steps to verify that every investor is accredited. Ticking a box is not enough. FENUL LLC verifies status, and qualified-client status, before sharing offering documents. Verification usually takes one of these forms:

  • A written confirmation from a certified public accountant, an attorney, a registered broker-dealer or a registered investment adviser who has checked your status.
  • A review of your documents, such as tax returns for income, or bank, brokerage and credit statements for net worth.
  • For a professional certification, a check of the public licensing record.

Capacity

The fund accepts a limited number of new investors.

Sending an inquiry does not reserve a place and does not commit you to invest.

How to invest

  1. Send an inquiry. Use the form on this page. Tell us how you would invest (individually, jointly, through an entity or through a trust) and how you expect to qualify.
  2. Verification. FENUL LLC confirms that you are an accredited investor and a qualified client, using one of the methods above. Nothing else is shared before this step.
  3. Offering documents. You receive the fund's private placement memorandum and subscription agreement. The offer is made only through these documents. Read them in full, ideally with your own legal, tax and financial advisers.
  4. Subscription. If you decide to invest, you complete and return the subscription agreement. The fund then confirms whether it accepts the subscription.

Risks

Hedge funds carry a higher degree of risk and are not suitable for most investors. The value of an investment can fall as well as rise and can fall to zero.

  • Market-neutral does not mean risk-free. A fund with long and short positions can lose money on both sides at once.
  • Model risk: systematic models can be wrong, can contain errors, and can stop working when markets change.
  • Short-selling risk: losses on a short position have no fixed limit, and borrowed securities can be recalled.
  • Leverage, where used, makes losses larger as well as gains.
  • Liquidity and redemption limits: withdrawals are restricted by the offering documents and can be delayed or suspended.
  • Concentration: the portfolio can be concentrated in fewer positions, sectors or risk factors than a broad market.
  • Fees and expenses reduce what investors receive, whether or not the fund makes money.
  • Interests are illiquid and their transfer is restricted. There is no public market for them.
  • Nothing here projects or implies future performance, and this page shows no performance information.

Next stepFund inquiry

Send an inquiry

For accredited investors who are also qualified clients. FENUL LLC replies to confirm your status before any offering documents are shared.

Sending this form is not an investment and does not commit you to invest. The details are used to reply to you and to verify your status.

Important notice

Nothing on this website is an offer to sell, or a solicitation of an offer to buy, any interest in FENUL Capital Investment LP or any other security. An offer is made only to eligible investors through the Fund's confidential offering documents.

The Fund is not registered under the Investment Company Act of 1940, and its interests are not registered under the Securities Act of 1933. Investors will not have the protections of the Investment Company Act. The interests have not been approved or disapproved by the SEC or any state securities regulator.

FENUL LLC is not a financial advisor and does not provide investment, legal or tax advice. Information on this website is not investment, legal or tax advice. Consider consulting a licensed financial professional before investing.

The articles, research and calculators elsewhere on this site are general education. They are not fund materials, and their arithmetic examples are not projections of the fund.