Professional Documents
Culture Documents
Table of Contents
Adviser Overview 3
Investment Process 13
Terms 15
Disclosures 16
2
Adviser Overview
Firm Profile
• Homrich Berg (“HB”) is an Atlanta-based wealth manager that offers investment management services to over
1,000 high net worth and institutional investors nationwide
• Founded in 1989, registered with the SEC, and manages approximately $5bn in discretionary assets
• In-house investment team currently manages 10 private funds in addition to the Peachtree Alternative
Strategies Fund
Investments Team
• The HB investment team draws on the resources of the broader firm and includes five dedicated investment
research professionals, five investment committee members, and six investment operations team members
• Stephanie Lang, CFA and Ford Donohue, CFA are both members of the in-house investment team and are the
Portfolio Managers for the Peachtree Alternative Strategies Fund
• The investment team is supported by the Firm’s Investment Committee, which is comprised of the most senior
members of the organization (with an average of more than 20 years industry experience)
Organization
Investment Team Investment Committee Operations Business Development
Stephanie Lang, CFA Stephanie Lang, CFA Chris Casdia Tom Houle
CIO, PM CIO, Partner, PM Chief Compliance Officer Director
Ford Donohue, CFA Ross Bramwell, CFA Andrew Pratt Steve Sullivan
Senior Investment Analyst, PM Partner Senior Investment Specialist Director
3
Hedge Funds as a Long-Term, Strategic Investment
• An investment in hedge funds should be a long-term, strategic investment aimed at improving overall portfolio
risk adjusted returns
• Hedge fund investments should generate a return stream between that of stocks and bonds with a volatility
profile that is closer to bonds
6%
Annualized Return
5%
4%
3%
0% 5% 10% 15% 20%
Standard Deviation
Hedge Funds (HFRI Composite) Equities (MSCI ACWI) Bonds (Bbg Barclays US Agg)
Source: Bloomberg
4
Hedge Funds are a Long-Term, Strategic Investment
Adding a 20% allocation to hedge funds from a traditional This is accomplished because hedge funds have captured more
65% equity / 35% bond portfolio has resulted in a higher of the upside and less of the downside of the equity markets
portfolio sharpe ratio that is less susceptible to equity
market drawdowns
4.0% 3.4%
5.4% Jan 1999– Dec 2016
Portfolio Risk and Return: 3.0%
5.3% January 1999- December 2016
Annualized Return
Equity valuation are at historic highs… While fixed income yields are at historic lows…
16
35 10Y Treasury Yield
14
30 12
25 10
20 +1 std dev
8
Average
15 6
-1 std dev
10 4
5 2
S&P 500 P/E Ratio
0 0
Mar-10
Mar-76
Mar-93
May-07
May-73
May-90
Sep-01
Jan-13
Jan-62
Sep-67
Jan-79
Sep-84
Jan-96
Jul-70
Jul-87
Jul-04
Nov-64
Nov-81
Nov-98
Nov-15
Apr-57
Apr-70
Apr-83
Apr-96
Apr-09
Jan-54
Oct-63
Jan-67
Oct-76
Jan-80
Oct-89
Jan-93
Oct-02
Jan-06
Oct-15
Jul-60
Jul-73
Jul-86
Jul-99
Jul-12
Source: Bloomberg
Data as of 11/30/17 6
Hedge Fund of Funds Landscape
• Peachtree Alternative Strategies Fund is structured to help provide an efficient means of obtaining the benefits
of hedge funds for high net worth investors
• In comparison to most fund of hedge funds, we believe that the Peachtree Alternative Strategies Fund is priced
attractively, has more efficient tax reporting, and is more accessible to investors through its low minimum
investment requirement
7
Peachtree Alternative Strategies Fund: Overview
• Peachtree Alternative Strategies Fund was created to help provide efficient exposure to a diversified portfolio
of hedge fund managers and strategies
• The Fund seeks to enhance a traditional portfolio of stocks and bonds by providing exposure to a highly
diversified portfolio of hedge fund strategies that may generate attractive risk-adjusted returns that are not
highly correlated to equity markets
• The Fund was launched in January 2017 when H&B Hedge Fund, LLC (the “Predecessor Fund”) was registered
with the SEC
• The investment goals and objectives were not changed in the conversion and the Predecessor Fund has a
track record of generating 6.5% per annum returns with 4.6% volatility since inception
2017 Returns (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD ITD*
Peachtree Alternative Strategies 0.5 1.3 0.7 0.8 1.2 0.0 0.8 0.8 0.2 0.8 -0.2 7.2 7.2
MSCI ACWI 2.7 2.8 1.2 1.6 2.2 0.5 2.8 0.4 1.9 2.1 1.9 22.0 22.0
Barclays US Aggregate 0.2 0.7 -0.1 0.8 0.8 -0.1 0.4 0.9 -0.5 0.1 -0.1 3.1 3.1
Past performance does not guarantee future results. Performance after January 3, 2017 is that of the Fund and is net off all Fund fees and expenses. The investment return and
principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be
lower or higher than the performance data quoted. Since the Fund does not yet have one year of returns, these returns have not been annualized and reflect cumulative returns
as of most recent month‐end. All Index performance data is referenced from Morningstar. *ITD stands for inception to date and indicates performance from 1/3/2017 to
present. Performance data prior to the Fund’s commencement on January 3, 2017 is that of the Predecessor Fund. Predecessor Fund performance includes the expenses of the
Predecessor Fund but is gross of any Management Fee as there was no Management Fee charged at the Fund level on the Predecessor Fund . Predecessor Fund investors were
all advisory clients of the Advisor and were charged an Investment Advisory Fee rather than a Fund Management Fee. The Fund’s expenses are greater than the actual expenses
of the Predecessor Fund. The Predecessor Fund was not subject to certain restrictions under the 1940 Act that may have adversely affected its performance. Sharpe ratio uses
three month treasury bills as the reference risk free rate. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. All Index performance data is referenced from
Morningstar.
Source: Morningstar
Data as of 11/31/17 8
Predecessor Fund Performance
Predecessor Fund Performance: January 1999 – December 2016
01/1999 – 12/2016 Predecessor Fund MSCI ACWI NR
Cumulative Growth
Cumulative Return 210.5% 113.7%
350 Predecessor Fund Annualized Return 6.5% 4.3%
300 MSCI ACWI
Standard Deviation 4.6% 15.7%
250 Barclays US Agg Bond
Sharpe Ratio 1.0 0.1
200
Correlation 0.6 1.0
150
Beta 0.2 1.0
100
Alpha 5.6% 0.0%
50
Largest Monthly Gain 3.4% 11.8%
-
Largest Monthly Loss -4.9% -19.8%
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
% Positive Months 70.4% 56.9%
Annual Return (%) ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16
Predecessor Fund 21.7 15.5 0.0 1.4 5.4 3.4 6.9 12.5 15.3 -13.5 20.6 6.8 -3.4 4.7 15.5 5.1 5.5 -0.4
MSCI ACWI 26.4 -14.2 -16.2 -19.3 34.0 15.2 10.8 21.0 11.7 -42.2 34.6 12.7 -7.4 16.1 22.8 4.2 -2.4 7.8
Barclays US Agg -0.8 11.6 8.4 10.3 4.1 4.3 2.4 4.3 7.0 5.2 5.9 6.5 7.8 4.2 -2.0 6.0 0.6 2.7
Past performance does not guarantee future results. Performance data prior to the Fund’s commencement on January 3, 2017 is that of the Predecessor Fund. Predecessor Fund
performance includes the expenses of the Predecessor Fund but is gross of any Management Fee as there was no Management Fee charged at the Fund level on the Predecessor Fund .
Predecessor Fund investors were all advisory clients of the Advisor and were charged an Investment Advisory Fee rather than a Fund Management Fee. The Fund’s expenses are greater than
the actual expenses of the Predecessor Fund. The Predecessor Fund was not subject to certain restrictions under the 1940 Act that may have adversely affected its performance. Sharpe
ratio uses three month treasury bills as the reference risk free rate. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. All Index performance data is referenced from
Morningstar.
Source: Morningstar
Data as of 12/31/16 9
Predecessor Fund Performance Analysis
• This scatterplot compares the annualized return • When looking at the same two data points over
and risk of the Predecessor Fund versus its every rolling three year period between January
benchmarks between January 1999 and 1999 and December 2016 The return and
December 2016 volatility of the Predecessor Fund have been
• Assets that are higher and to the left of the more consistent than those of the equity market
chart have achieved a higher return with lower over time
volatility in comparison to others • While rolling three year returns of the equity
• The Predecessor Fund has generated 6.5% per markets have ranged from -20% to +25% per
annum return with volatility comparable to annum, rolling returns of the Predecessor Fund
bonds since inception in 1999 have ranged between 0% and +12% per annum
10%
5%
5%
0%
-5%
4% -10%
-15%
-20%
3% -25%
0% 5% 10% 15% 20% 0% 5% 10% 15% 20% 25% 30%
Standard Deviation Rolling Standard Deviation
Predecessor Fund MSCI ACWI Barclays US Agg Bond Predecessor Fund MSCI ACWI
Source: Bloomberg
Data as of 12/31/16 10
Past performance does not guarantee future results
Predecessor Fund Performance Analysis
• This chart splits every month between January 1999 and December 2016 into months when the MSCI ACWI
had a negative return and months when the MSCI ACWI had a positive return
• In those months when equities were down, the equity market had an average return of -3.6%, while the
Predecessor Fund had an average return of -0.2%
• In those months when equities were up, the equity market had an average return of +3.4%, while the
Predecessor Fund had an average return of +1.1%
4%
3%
Predecessor fund MSCI ACWI
2%
1%
0%
-1%
-2%
-3%
-4%
Equities Down Equities Up
Source: Bloomberg
Data as of 12/31/16 11
Past performance does not guarantee future results
Fund Composition & Objectives
• The Fund has two components:
• Absolute Return strategies: seek returns in excess of bonds with as little correlation to equity markets
as possible
• Equity Long / Short strategies: seek equity-like returns over a full market cycle with less volatility than
the equity markets
• Allocation to these two components of the portfolio will vary based on opportunity set
• When looked at in aggregate, the Fund seeks to produce a diversifying return stream between that of stocks
and bonds with less volatility than the equity markets. Over any given period, the Fund and/or each strategy
may not achieve these return targets and risk/volatility could be higher than that of the equity markets
13
Investment Due Diligence Process
Investment Due Diligence is led by the Portfolio Managers with the
assistance of the Investment Analysts
Strategy Review
Investment due diligence items include:
• Manager Sourcing Manager Strategy
• Maintaining relationships with capital introduction, third party Sourcing Analysis &
Review
marketers, hedge fund investor relations teams, and other LPS
• Taking hundreds of meetings with prospective fund managers
• Strategy Analysis & Review
• Quantitative analysis includes items such historical Portfolio
performance analysis versus peers and benchmarks, Management
consideration of risk and leverage, manager style consistency,
portfolio look-through, and strategy interaction with the current Investment
portfolio funds Committee
• Qualitative analysis to assess team structure, longevity, Approval
incentives, conflicts of interests, GP commitment, and Legal/
ownership structure Compliance
• Portfolio Management Review
• Monthly performance and risk analysis, quarterly manager
calls, and periodic onsite visits to ensure current portfolio fund
managers are operating in line with expectations Third-Party
Service Operations
• Assessment of outlook for various hedge fund strategies and Review
Provider
adjust portfolio allocations accordingly Review
14
Terms & Conditions
Investment Details Fund Information
Minimum Investment $25,000 Structure SEC Registered Investment Company
Add-on Minimums $10,000 Advisor Homrich & Berg
Subscriptions Monthly Subadvisor ABS Investment Management
Lock-Up None Tax Reporting Form 1099
Eligible Investors Accredited Administrator Ultimus Fund Solutions
Redemptions* Quarterly via tender offer Auditor Cohen & Company, LTD.
*Redemptions not guaranteed Legal Bernstein Shur
15
Disclosures
Presentation
This presentation is strictly confidential and is not to be provided to any person without the approval of the Adviser. This presentation does not represent an offer to sell or the solicitation of an offer to buy
shares of Peachtree Alternative Strategies Fund (the “Fund). Any such offer or solicitation must be made only through the Fund’s current prospectus. The information herein is not intended to provide,
and should not be relied upon for accounting, legal or tax advice or investment recommendations.
You should make an independent investigation of the Fund, including your tax, legal, accounting, and other advisors. Before investing
you should carefully consider the Fund’s Investment Objectives, Risks, charges and expenses. A prospectus with this and other
information about the Fund may be obtained by calling 1-800-657-3812. The prospectus should be read carefully before investing.
The Fund
the Fund is a Delaware statutory trust that is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as a non-diversified, closed-end management investment company.
Interests in the Fund (“Shares”) are also registered under the 1940 Act and the Securities Act of 1933, as amended (the “1933 Act”). Although Shares are registered under the 1940 Act and the 1933
Act, they are subject to substantial limitations on transferability and resale. The Fund operates as a “fund of hedge funds” and provides investors access to a variety of professionally managed private
investment funds that Homrich & Berg, Inc. (the “Adviser”) believes will provide a diversifying return stream to shareholders (each a “Portfolio Fund”). The Prospectus offers Shares of the Fund’s
Institutional class (the “Institutional Shares”). In the future, the Fund may offer other classes of common shares with different pricing structures. At the commencement of the Fund’s operations, H&B
Hedge Fund, LLC (“The Predecessor Fund”) was reorganized into the Fund. The Fund and the Predecessor Fund have equivalent investment objectives and policies, and the same Adviser and Sub-Adviser
and portfolio managers. The Predecessor Fund was not registered under the 1940 Act. Ultimus Fund Distributors, LLC serves as the Fund’s distributor of Shares.
Risk
An investment in the Fund will involve significant risks, including the loss of the amount invested. Investment in the Fund is suitable only for certain financially sophisticated investors who have no need
for immediate liquidity in their investment and can bear the risk of an investment for an extended period of time. There is no guarantee that the Fund will achieve its objectives. Investments in the Fund
will not be registered under the 1940 Act. The Fund is also subject to cybersecurity risk, fund of funds structure risk, legal and regulatory risk, liquidity risk, loss of investment risk, limited operating history
risk, market risk, non-diversification risk, and portfolio fund risk. Additional risks include but are not limited to:
Control Risk – The Adviser will not have control of, or have the ability to exercise influence over, the trading policies or strategies of a Portfolio Fund. Investment decisions of the Portfolio Funds are also
made independently of each other so that, at any particular time, one Portfolio Fund may be purchasing shares of an issuer whose shares are being sold at the same time by another Portfolio Fund.
Transactions of this sort could result in the Fund directly or indirectly incurring certain transaction costs without accomplishing any net investment result.
Expense Layering Risk – In addition to its own expenses, the Fund will also bear its allocable share of the costs and expenses of each Portfolio Fund, including its allocable share of the management and
incentive compensation paid to an Investment Manager. As a result, the Fund’s investments in the Portfolio Funds may result in the Fund paying higher expenses than other funds with similar investment
objectives and strategies or if it invested directly in the securities held by the Portfolio Funds. Also, each Investment Manager generally will be entitled to receive a management fee of between 1% and 2%
and a performance-based allocation, expected to range up to 20% of a Portfolio Fund’s net profits.
Long/Short Strategy Risk – The success of a long/short strategy is contingent upon an Investment Manager’s ability to correctly identify investment opportunities with the highest probability of success
(long positions) and/or those with the highest probability of failure (short positions). Substantial losses may be recognized as a result of the implementation of this strategy.
Short Selling Risk - The sale of a borrowed security, if uncovered, may result in a loss if the price of the borrowed security increases after the sale. Losses on short sales are theoretically unlimited.
Leverage Risk - The use of leverage by a Portfolio Fund can substantially increase the adverse impact of the risks of investing in the Portfolio Fund and can result in substantial
losses to the Portfolio Fund.
The foregoing is only a brief, incomplete summary of some of the risks an investor should consider. See the prospectus for a comprehensive description.
16
Disclosures
Performance
There is no assurance that the Fund will achieve comparable returns in the future to those that it has in the past or those achieved by the Predecessor Fund. Individual investor returns may vary based on
timing of investment. Indexes are unmanaged and one cannot invest directly in an index.
MSCI All Country World Index is an unmanaged, free float-adjusted, market capitalization weighted index composed of stocks of companies located in countries throughout the world. The index includes
reinvestment of dividends, net of foreign taxes. The Barclay’s U.S. Aggregate Index is a broad based unmanaged bond index that is generally considered to be representative of the performance of the
investment grade, U.S. dollar denominated, fixed rate taxable bond market. The index return assumes reinvestment of interest.
HFRI FoF Composite Index is an equal weighted composite index of all Fund of Funds that report to the HFRI database, which indlces over 7300 funds and funds of funds worldwide. In order to be
considered for inclusion in the HFRI, a hedge fund manager must submit a complete set of information to HFR Database. Funds are eligible for inclusion in the HFRI the month after their addition to HFR
Database. For instance, a fund that is added to HFR Database in June is eligible for inclusion in the indices upon reporting their July performance. Additionally, all HFRI constituents are required to report
monthly, net of all fees performance and assets under management in U.S. dollars. Constituent funds must have either (a) $50 million under management or (b) a track record of greater than twelve (12)
months.
Per the prospectus dated August 31, 2017, the Fund's shares gross expense ratio was 4.95%. The expense ratio include the acquired fund fees and expenses, inclusive of performance fees. The Adviser
has contractually agreed to waive its management fee and/or reimburse expenses to limit the Fund’s total annual fund operating expenses attributable to the Institutional Shares to 1.50% (after fee
waivers and/or expense reimbursements, and exclusive of taxes, interest, portfolio transaction expenses, acquired fund fees and expenses and extraordinary expenses not incurred in the ordinary course
of the Fund’s business). Expenses reimbursed and/or fees reduced by the Adviser may be recouped by the Adviser for a period of three (3) years following the date such reimbursement or reduction was
made if such recoupment does not cause current expenses to exceed the expense limit for Institutional Shares in effect at the time the expenses were paid/waived. These arrangements will continue until
August 31, 2018 and may be terminated at any time by the Board. No such termination will affect the obligation (including the amount of the obligation) of the Fund to repay amounts of waived fees
and/or reimbursed expenses with respect to periods prior to such termination.
Standard Deviation is a measure of dispersion of a set of data from its mean. It is calculated as the square root of variance. Standard deviation is applied to the annualized rate of return of an investment
to measure the investment’s volatility. Sharpe Ratio is calculated by subtracting the risk-free rate, in this case the 3 month treasury bill, from the rate of return for a portfolio and then dividing the
difference by the standard deviation of portfolio returns. Beta is a measure of volatility of a security or strategy relative to a market index (in this case the MSCI ACWI NR USD). Maximum Drawdown is
calculated as the largest peak-to-trough decline over a given time frame calculated in percentage terms. “Months to Recover” represents how long it took the investment to recover the losses from the
Maximum Drawdown.
17