Questions about investing? Call us at 806-323-8000.
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HOW TO INVEST

1. Carefully consider your financial situation and your risk tolerance before investing. The Abraham Fortress Fund (the Fortress Fund) is not appropriate for all investors. Like all investments, the Fortress Fund involves substantial risk of loss.

Because of the risk involved in all forms of investing and trading, some investments may not be appropriate for certain investors. Before investing in the Fortress Fund, you should consider what level of risk is comfortable and appropriate for your specific financial situation. You should not invest in the Fortress Fund if you believe it exceeds what is comfortable or appropriate for you. Please keep in mind that past performance is not necessarily indicative of future results. Just because an investment or an investment manager has done well in the past does not mean that the investment or investment manager will do well in the future. When researching investments and investment managers, you should carefully evaluate long-term performance, short-term performance, volatility, fees, investment terms and documents, company operations, the company management team, and the investment principles of the firm to understand whether or not the investment is appropriate for you.

2. Meet our investor requirements.

Our minimum investment is $100,000.

Full investor requirements are provided here. You must be a Qualified Eligible Person (QEP) as defined under CFTC Regulation 4.7, and you must be an Accredited Investor as defined under SEC Regulation D Rule 501(a). Please be truthful. Abbreviated definitions are described below.

A Qualified Eligible Person (QEP), as defined under CFTC Regulation 4.7, must meet the following Portfolio Requirement:

(a) Owns securities and other investments with an aggregate market value of at least $2 million; or (b) Has had on deposit with an FCM at least $200,000 in exchange-specified initial margin and option premiums for commodity interest transactions, together with required minimum security deposit for retail forex transactions, in the six months prior to the investment; or (c) Has a combination of the two above. For example, has $1 million in securities/investments and $100,000 in exchange-specified initial margin in the six months prior to the investment.

An Accredited Investor is defined under SEC Regulation D Rule 501(a). Some definitions include:

An individual whose net worth (excluding the value of their primary residence), or joint net worth with their spouse, exceeds $1,000,000. An individual is also considered “accredited” if their gross income exceeded $200,000 in the last two years, or if their joint gross income with their spouse exceeded $300,000 in the last two years, and if they expect their single or gross income to reach the same level in the current year.

An individual holding in good standing one or more of the following professional certifications, designations or credentials: (i) General Securities Representative license (Series 7); (ii) the Private Securities Offerings Representative license (Series 82) or (iii) the Licensed Investment Adviser Representative (Series 65).

A partnership, corporation, limited liability company, or business trust that is owned 100% by accredited investors as defined above, or if it was not formed for the specific purpose of investing in Fortress and has total assets exceeding $5,000,000.

A 501(c)(3) organization not formed for the specific purpose of investing in the Fund and with total assets exceeding $5,000,000.

A federal or state-registered investment adviser or exempt reporting adviser, regardless of the level of assets under management.

A U.S. bank, U.S. savings and loan association, or other similar U.S. institution acting in its individual or fiduciary capacity.

A plan established and maintained by a state or its political subdivisions, or any agency or instrumentality thereof, for the benefit of its employees, and which has total assets in excess of $5,000,000.

Any trust with total assets exceeding $5,000,000, not formed for the specific purpose of investing in the Fund, and whose purchase is directed by a person with such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment.

A “family office” or its “family clients” each as defined under the Advisers Act, provided (i) the family office has at least $5 million in assets under management, (ii) was not formed for the purpose of investing in the Fund and (iii) was directed to make the investment by a person who has such knowledge and experience in financial and business matters such that the family office is capable of evaluating the merits and risks of the investments.

3. If you meet the fund's investor requirements and can meet the fund's minimum investment, start the investing process here.

After submitting the form at the link above, you will receive a confirmation email with fund information. Please review the fund information carefully, and follow the instructions in the email.

If you would like to complete your fund documents on paper, please contact Russell Fry at 806-323-8000 or ​russell@abrahamtrading.com​ to obtain investing information and materials.

4. After you complete your investing documents, wire your investment using the wiring instructions provided. You will receive a phone call or email from our team confirming that we have received your wire.
5. Starting at the close of the last trading day of the month, your money is officially invested in the Abraham Fortress Fund.

DISCLAIMER: The above explanations are an effort to summarize the investing and redemption process described in the Abraham Fortress Fund Private Placement Memorandum (PPM). If any inconsistencies exist between the summary above and the Abraham Fortress Fund PPM, the language in the Abraham Fortress Fund PPM shall be the governing language. Please review the PPM in its entirety.

What to Expect After You Invest

After you submit all of your investing documents and send your wire, you will receive a phone call or email from a member of our team confirming that we have received the documents and your wire.

Next, you will receive an email invitation from UMB, our fund administrator, to create an online account for their investor portal. The investor portal allows you to access your account information and investment statements online. The "Client Login" button in the top right-hand corner of this website will take you to the investor portal. You will receive your first statement from UMB after the 20th of the following month. The 3-4 week delay on your statement is due to the hedge funds in the Fortress Fund portfolio, which must issue their respective statements to us before we can provide you with your investor statement. Your statement will be physically mailed and/or emailed to you depending on what communication method(s) you selected in your fund documents.

You can monitor the daily performance of the Abraham Fortress Fund on the Performance Page of this website.

If you provided an email address to us when you invested, you will receive an email each month from Abraham Trading with the Fortress Fund’s monthly performance estimate. This email is usually sent 1-3 days after the end of each month.

DISCLAIMER: The above explanations are an effort to summarize the investing and redemption process described in the Abraham Fortress Fund Private Placement Memorandum (PPM). If any inconsistencies exist between the summary above and the Abraham Fortress Fund PPM, the language in the Abraham Fortress Fund PPM shall be the governing language. Please review the PPM in its entirety.

How to Add To or Redeem Your Investment

Additions

Please complete this process at least 6 days prior to the end of the month.

Notify Russell at russell@abrahamtrading.com​ that you are making an addition to your investment. Use the same wiring instructions from your initial investment to send your addition.

Partial Redemption of Investment

Please complete this process at least 6 days prior to the end of the month.

Complete the redemption form, found here, and email it to Russell Fry at russell@abrahamtrading.com​.

The most expedient way to redeem part of your investment is to request a dollar amount (ex. $100,000) to be returned to you in full by the third business day of the following month. You can also redeem part of your investment by redeeming a specific number of units. If you choose this, you will receive 95% of the proceeds of your units by the 3rd of the following month and then the remaining balance once the accounting for that month is complete. We suggest clients make a partial redemption based on a dollar amount rather than units to make the capital return process more expedient.

Closing Your Account (Full Redemption of Investment)

Please complete this process at least 6 days prior to the end of the month.

The redemption form, found here, should be completed and emailed to both Russell Fry at russell@abrahamtrading.com​​ and UMB Fund Services at abrahamfortressinvest@umb.com.​​

95% of your investment will be in your possession in 3 business days following the end of the month, and the balance will be returned to you within 30 days of the month’s end.

DISCLAIMER: The above explanations are an effort to summarize the investing and redemption process described in the Abraham Fortress Fund Private Placement Memorandum (PPM). If any inconsistencies exist between the summary above and the Abraham Fortress Fund PPM, the language in the Abraham Fortress Fund PPM shall be the governing language. Please review the PPM in its entirety.

FAQs

What is the fee for the Abraham Fortress Fund?

The only fee Abraham Trading Company receives is a 0.65% annual management fee, 1/12th of which is paid each month. Abraham Trading Company pays legal, audit, and administrative fees out of the 0.65% management fee that we collect.

The Fortress Fund pays two fees to third parties: 1) Fees and expenses of direct investments, including brokerage commissions and fees, and 2) Fees and expenses for investing with third-party hedge funds in the portfolio. Our firm does NOT collect brokerage trails, soft dollars, redemption fees, front-end load fees, back-end load fees, or trailing fees, or we do not participate in any kind of fee-sharing with underlying funds or sub-advisors.

How much money should I invest in the Abraham Fortress Fund?

First, you must meet our investor qualifications. If you do, we recommend that the amount of money you choose to invest be based on your financial goals and risk tolerance. Before opening your account, carefully evaluate your goals and your risk tolerance as well as the investing documents that we provide to you. If you have any questions, feel free to give us a call.

How does reporting work with the Abraham Fortress Fund? Will I receive statements from each investment in the portfolio?

Each investment in the Fortress portfolio is aggregated into one statement, simplifying statements and the reporting process for our investors.

What is in the Abraham Fortress Fund portfolio? How does Abraham Trading access each investment?

The Fortress Fund is made up of stocks, fixed income, gold, and alternative hedge funds. Our stock exposure and gold exposure are accessed via futures. The fixed income portion of our portfolio is US treasuries. Fortress also invests in approximately 6-12 alternative hedge funds. Generally, we do not access stocks and bonds through mutual funds or ETFs because we do not want to pass on added fees in these products to our clients. With our investment experience, we directly access these markets without additional costs to our clients.

When should I expect my K-1 each year?

Investors should expect their K-1s by June. Before the Fortress Fund can complete its tax return, it needs to receive K-1s from each of the Fund’s underlying hedge fund investments. Once we receive the K-1s from each investment, our auditor can prepare K-1s for our investors. This timeline will necessitate you filing an extension on your tax return.

How do taxes work with the Abraham Fortress Fund?

You will receive a K-1 each year for your investment. Your K-1 will include a mixture of long-term gains, short-term gains, and interest income. Please consult with your tax advisor about how an investment in the Fortress Fund will affect your specific tax situation.

Can I invest a portion of my retirement portfolio in the Abraham Fortress Fund?

Yes, we accept investments from retirement accounts. All investors must meet our investor requirements of being a Qualified Eligible Person (QEP) and an Accredited Investor.

DISCLAIMER: The above explanations are an effort to summarize the investing and redemption process described in the Abraham Fortress Fund Private Placement Memorandum (PPM). If any inconsistencies exist between the summary above and the Abraham Fortress Fund PPM, the language in the Abraham Fortress Fund PPM shall be the governing language. Please review the PPM in its entirety.

Looking for more information?

Start by downloading the​ Fortress Strategy Presentation​.

Have questions about Fortress?

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