Private Advisors

107 Pages·2016·1.26 MB·English

by  Lisa Cottiers

PRIVATE ADVISORS ESTIMATED PERFORMANCE SUMMARY1
March 2016 Performance Update
Annualized
Net Performance2 Standard
as of March 31, 2016 MTD YTD Since Deviation Since
Return Return 1-Year 3-Year 5-Year Inception Inception
Low Volatility Multi-Strategy Funds
Inception: June 1998
Private Advisors Stable Value Fund, Ltd.3 -0.05% -0.83% -6.30% -0.32% 1.41% 5.58% 3.61%
PA Stable Value Fund, Ltd.4 -0.05% -0.83% -6.30% -0.33% 1.38% 5.54% 3.60%
Private Advisors Stable Value ERISA Fund, Ltd.5 -0.03% -0.76% -5.67% -0.11% 1.48% 5.68% 3.59%
HFRI Fund of Funds Conservative Index6 -0.03% -2.21% -3.67% 2.00% 1.63% 3.52% 4.04%
Barclays Aggregate Bond Index7 0.92% 3.03% 1.96% 2.50% 3.78% 5.25% 3.43%
S&P 500 Total Return Index8 6.78% 1.35% 1.78% 11.82% 11.58% 5.59% 15.53%
Long/Short Equity Strategy Funds
Inception: November 2001
Private Advisors Hedged Equity Fund (QP), Ltd.9 1.78% -4.34% -7.40% 2.56% 4.29% 5.21% 7.08%
Private Advisors Hedged Equity Fund, Ltd.10 1.78% -4.34% -7.40% 2.57% 4.38% 4.55% 7.72%
Private Advisors Hedged Equity Fund (QP), LP11 1.98% -4.11% -7.68% 2.47% 4.37% 5.04% 7.16%
PA Hedged Equity Fund, LP12 1.98% -4.11% -7.68% 2.49% 4.38% 4.86% 7.12%
HFRI Equity Hedge Index13 3.43% -1.66% -4.49% 2.59% 1.75% 4.84% 8.10%
S&P 500 Total Return Index8 6.78% 1.35% 1.78% 11.82% 11.58% 6.85% 14.69%
Barclays Aggregate Bond Index7 0.92% 3.03% 1.96% 2.50% 3.78% 4.65% 3.48%
Past performance is not indicative of future results. Please see important disclosures on pages 4-5.
MARKET COMMENTARY
Equity markets rebounded sharply in March, recovering The three best performing S&P sectors in March were
from January and February losses as oil prices began to Energy (+9.3%), Information Technology (+9.2%) and
rise and worries about the global economy eased. The Utilities (+8.0%). Meanwhile, Health Care (+2.8%),
S&P 500 TR Index was up 6.8% for month; while the Consumer Staples (+4.8%) and Telecommunications
Russell 3000 Index returned 7.0%. Small-caps performed (+6.4%) were the worst performers. For the year,
well in March but remain in negative territory for the year Telecommunications (+16.6%) and Utilities (+15.6%)
due to January losses. Fundamentals appear less continue to lead performance by a considerable margin;
attractive as first quarter corporate earnings have been while Health Care (-5.5%) and Financials (-5.1%) have
revised downward substantially with 94 companies in the materially underperformed.
S&P 500 issuing negative EPS guidance according to
FactSet. Much of this negative guidance has been driven Developed non-U.S. equities generated strong returns in
by a stronger U.S. dollar. March as the MSCI EAFE Index was up 6.7% for the
month. The MSCI EAFE Index is still in negative territory
Consumer confidence in the U.S. improved in March to for the 12-month period, down 7.1%. According to MSCI
96.2 (from 94.0 in February). The Institute for Supply country indices, equity markets in Germany, Austria and
Management (ISM) Index increased to 51.8%, from Portugal were all up over 9% for the month.
49.5% in February. Three of the five component indexes,
including new orders, production and supplier deliveries Emerging market equities rebounded sharply in March
registered 50% or higher for the month; meanwhile from February’s loss and outperformed developed
employment and inventories contracted. According to the markets. The MSCI Emerging Markets Index was up
Bureau of Labor Statistics, the U.S. unemployment rate 13.3% for the month. In particular, markets in Brazil and
increased slightly to 5.0%, while total nonfarm payroll Columbia had strong performance in March. The Dow
employment increased by 215,000 in March. Jones Commodity Index had a gain of 3.8% in March
driven primarily by price increases in precious metals.
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March 2016 Performance Update
global macro, volatility arbitrage and short-biased credit
S&P U.S. Sector Total Return Index Performance
strategies. Sharp market reversals like we’ve seen in
March 2016 and October 2015 have proven very
MTD Return YTD Return
challenging for fundamentally oriented and hedged
Consumer Discretionary Sector 6.7% 1.6% managers to navigate.

Consumer Staples Sector 4.8% 5.6%
Merger arbitrage was a bright spot within both dedicated
and multi-strategy portfolios, as evidenced by HBK’s
Energy Sector 9.3% 4.0%
strong performance. Corporate credit managers had mixed
Financials Sector 7.3% -5.1% results, but overall the strategy was negative for the
month due primarily to underperformance of Apollo Short
Health Care Sector 2.8% -5.5%
Credit. Several distressed managers that added risk during
Industrials Sector 7.1% 5.0% the sharp sell-off in early February, including Redwood
and Stonehill, were rewarded by the quick reversal in
Information Technology Sector 9.2% 2.6%
technical conditions. Managers that maintained a
disciplined short book, including Apollo and Panning,
Materials Sector 7.7% 3.6%
suffered as high yield prices quickly reversed course.
Telecommunications Sector 6.4% 16.6% Energy-related credits showed particular strength in
conjunction with the rally in oil prices, in some cases more
Utilities Sector 8.0% 15.6%
than merited by fundamentals. Structured credit also
rebounded in March as technical pressures subsided and
Fixed income markets were positive for the month, and capital flowed into the more dislocated sectors. One
the Barclays Aggregate Bond Index was up 0.9%. The William Street benefited from this rebound and from
strongest performance in March came from non- adding marginal risk earlier in the year. Meanwhile, Tilden
investment grade and distressed credit markets. High yield Park’s short positions in commercial mortgage backed
credit produced gains with the BofA Merrill Lynch U.S. securities proved costly.
High Yield Index up 4.4%. The BofA Merrill Lynch CCC and
Lower U.S. High Yield Index rallied 10.2%, and the BofA The Funds’ global macro exposure was the largest
Merrill Lynch U.S. Distressed High Yield Index gained detractor in March, with four of five managers generating
12.6% in March. U.S. investment grade credit also losses. However, Autonomy generated strong positive
performed well, gaining 2.7%. performance driven by positions in Brazilian nominal and
inflation-linked bonds, as well as in Colombian, Greek and
The BofA Merrill Lynch 10-Year U.S. Treasury Index lost Ukrainian sovereign bonds. All other macro managers
0.2% in March with the 10-Year U.S. Treasury yield were negatively impacted by foreign exchange positions,
increasing to 1.8% from last month. Investment grade including the euro, British pound and certain emerging
yields ended March at 3.2%, and spreads on investment market currencies. Within volatility arbitrage, Parallax
grade bonds tightened to 170 bps. High yield bond managed to end the month flat, but Argentiere was hurt
spreads decreased to 705 bps, and CCC spreads by the collapse of implied volatility and significant
decreased to 1,777 bps. compression in the VIX during the month.

LOW VOLATILITY MULTI-STRATEGY LONG/SHORT EQUITY STRATEGY

Private Advisors Stable Value Fund, Ltd., Private Advisors Private Advisors’ Hedged Equity portfolios were positive in
Stable Value ERISA Fund, Ltd., and PA Stable Value Fund, March, but underperformed the S&P 500 Index for the
Ltd. performance was flat for the month and roughly in month.
line with the HFRI Fund of Funds Conservative Index’s
return, according to early reporting. As mentioned, global Sessa, Impala and Crescent Park generated strong results
financial markets experienced strong gains in March, for the month and were among the top contributors to
continuing the rebound off mid-February’s lows. Most performance within the portfolio. Sessa benefited from
equity-oriented and event driven hedge fund strategies concentration on the long side as a few of their names
participated in the rally, but arbitrage and credit strategies outperformed in March. Several of Impala’s more cyclical
were mixed, and global macro strategies generally longs outperformed during a month when markets were
declined during the month. Within our portfolios, about almost universally positive. Crescent Park rebounded in
half of the managers generated positive performance, but March after having a tough start to the year. Meanwhile,
gains were equally offset by underperformance across Adelphi, Hound, SRS, and to a much lesser extent
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March 2016 Performance Update
LONG/SHORT EQUITY STRATEGY (CONTINUED) positive results in the manager’s long book. Hound also
struggled on the short side, and experienced losses from a
Greenlight, were the only managers with negative long position in the healthcare space.
performance for the month. Adelphi suffered losses
related to names in the consumer discretionary and At the end of March, Private Advisors Hedged Equity Fund,
consumer staples sectors and from short exposures in Ltd. and Private Advisors Hedged Equity Fund (QP), Ltd.
Germany and the Netherlands. Negative performance in had market exposures of approximately 94% long, 48%
SRS’s short portfolio during March more than offset short, 142% gross and 46% net invested.
CONTACT INFORMATION
Investor Relations Team
[phone]
[email protected]
www.privateadvisors.com
page 3
March 2016 Performance Update
1 Past performance is not indicative of future results. This is neither an offer to subscribe nor a solicitation to invest in the funds. Such offer or solicitation
will only be made to qualified investors by means of an authorized offering document and only in those jurisdictions where permitted by law.

2 2015 and 2016 estimates are unaudited, subject to change and are shown net of all expenses and management fees. Actual returns may differ from
these reported results due to differences in contribution dates, fee structures and new issue eligibility.

3 The results portrayed for Private Advisors Stable Value Fund, Ltd. reflect the reinvestment of dividends and other earnings. Performance numbers and
allocations for the period June 1, 1998 through March 31, 2001 are the results of Private Advisors Alternative Asset Fund (QP), LP, a former onshore, 3
(c)(7) companion fund to the Private Advisors Stable Value Fund, Ltd. Private Advisors Alternative Asset Fund (QP), LP began winding down in 2011 and,
while there is no impact to the performance numbers and allocations presented herein, we note that the companion fund is no longer offered.
Performance numbers and allocations after March 2001 are for the Private Advisors Stable Value Fund, Ltd. The Private Advisors Stable Value Fund,
Ltd. commenced operations on April 1, 2001. Results shown are net of all expenses, incentive allocations as applicable and a 1.25% management
fee charged to Private Advisors Stable Value Fund, Ltd. and previously charged to Private Advisors Alternative Asset Fund (QP), LP. Private Advisors, LLC,
as investment manager, pursues the same investment objective and employs a similar mix of investment strategies in Private Advisors Stable Value
Fund, Ltd. as done previously in the former companion fund, Private Advisors Alternative Asset Fund (QP), LP; except that Private Advisors Stable Value
Fund, Ltd. generally invests in the offshore funds organized by each of the managers. While there was historically significant overlap in the managers
used by the two funds, it should be specifically noted that they were not the same in all cases and even where the managers were the same the relative
weightings differed. Effective January 1, 2007, the Private Advisors Stable Value Fund, Ltd. was restructured to utilize a master/feeder structure where
the assets of the Private Advisors Stable Value Fund, Ltd. were invested in the Private Advisors Stable Value Master Fund, Ltd.

4 The results portrayed reflect the reinvestment of dividends and other earnings. Performance numbers and allocations for the period June 1, 1998
through March 31, 2001 are the results of Private Advisors Alternative Asset Fund (QP), LP, a former onshore, 3(c)(7) companion fund to the PA Stable
Value Fund, Ltd. Private Advisors Alternative Asset Fund (QP), LP began winding down in 2011 and, while there is no impact to the performance
numbers and allocations presented herein, we note that the companion fund is no longer offered. Performance numbers from April 2001 through July
2004 are the result of Private Advisors Stable Value Fund, Ltd., a 3(c)(7) companion fund to the PA Stable Value Fund, Ltd. The PA Stable Value
Fund, Ltd. commenced operations on July 1, 2004. Results shown are net of all expenses, incentive allocations as applicable, and a 1.25%
management fee charged to PA Stable Value Fund, Ltd. and previously charged to Private Advisors Alternative Asset Fund (QP), LP. Private Advisors LLC,
as investment manager, will pursue the same investment objective and employ a similar mix of investment strategies in PA Stable Value Fund, Ltd. as
done previously in the former companion fund, Private Advisors Alternative Asset Fund (QP), LP; except that the PA Stable Value Fund, Ltd. will generally
invest in the offshore fund organized by each of the managers. While there was historically significant overlap in the managers used by the two funds, it
should be specifically noted that they were not the same in all cases and even where the managers were the same the relative weightings
differed. Effective January 1, 2007, the PA Stable Value Fund, Ltd. was restructured to utilize a master/feeder structure where the assets of the PA
Stable Value Fund, Ltd. were invested in the Private Advisors Stable Value Master Fund, Ltd. ("PASVMF").

5 The results portrayed for Private Advisors Stable Value ERISA Fund, Ltd. reflect the reinvestment of dividends and other earnings. Performance numbers
and allocations for the period June 1, 1998 through March 31, 2001 are the results of Private Advisors Alternative Asset Fund (QP), LP, a former onshore,
3(c)(7) companion fund to the Private Advisors Stable Value ERISA Fund, Ltd. Private Advisors Alternative Asset Fund (QP), LP began winding down in
2011 and, while there is no impact to the performance numbers and allocations presented herein, we note that the companion fund is no longer offered.
Performance numbers from April 2001 through February 2003 are the result of Private Advisors Stable Value Fund, Ltd., an offshore companion fund to
the Private Advisors Stable Value ERISA Fund, Ltd. Performance numbers after February 2003 are the result of Private Advisors Stable Value ERISA Fund,
Ltd. The Private Advisors Stable Value ERISA Fund, Ltd. commenced operations on March 1, 2003. Results shown are net of all expenses,
incentive allocations as applicable and a 1.25% management fee charged to Private Advisors Stable Value ERISA Fund, Ltd. and previously charged to
Private Advisors Stable Value Fund, Ltd. and Private Advisors Alternative Asset Fund (QP), LP. Private Advisors, LLC, as investment manager, pursues
the same investment objective and employs a similar mix of investment strategies in Private Advisors Stable Value ERISA Fund, Ltd. as done previously
in the former companion fund, Private Advisors Alternative Asset Fund (QP), LP; except that Private Advisors Stable Value ERISA Fund, Ltd. generally
invests in the offshore funds organized by each of the managers. While there was historically significant overlap in the managers used by the two funds,
it should be specifically noted that they were not the same in all cases and even where the managers were the same the relative weightings differed.
6 HFRI Fund of Funds Conservative Index - The Index is a non-investable product of conservative fund of funds. The index is equal weighted (fund
weighted) with an inception of January 1990.

7 Barclays Capital Aggregate Bond Index (or “Barclays Aggregate Bond Index”) - Formerly known as Lehman Brothers Aggregate Bond Index. Index is a
benchmark index made up of the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index,
including securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100
million. You cannot invest directly in the Index.

8 S&P 500 Total Return Index (or “S&P TR”) - The Index is an unmanaged index of 500 common stocks that is generally considered representative of the
U.S. stock market. The Index is heavily weighted towards stocks with large market capitalizations. The Index assumes reinvestment of dividends and
capital gains at net asset values. The Fund currently uses this Index as the broad-based securities market index for comparison purposes in reporting
performance. You cannot invest directly in the Index.

9 The results portrayed reflect the reinvestment of dividends and other earnings. Performance numbers through February 28, 2003 are the results of
Private Advisors Hedged Equity Fund (QP), LP, an onshore companion fund to the Private Advisors Hedged Equity Fund (QP), Ltd. Performance numbers
from February 28, 2003 to December 31, 2003 are the result of Private Advisors Hedged Equity Fund, Ltd., an offshore, 3(c)1 companion fund to the
Private Advisors Hedged Equity Fund (QP), Ltd. Performance numbers after December 31, 2003 are the result of the Private Advisors Hedged Equity
Fund (QP), Ltd. The Private Advisors Hedged Equity Fund (QP), Ltd. commenced operations on January 1, 2004. Results shown are net of all
expenses, incentive allocations as applicable, and a 1% management fee. Private Advisors LLC, as investment manager, will pursue the same investment
page 4
March 2016 Performance Update
objective and employ a substantially similar mix of investment strategies in the Private Advisors Hedged Equity Fund (QP), Ltd., the Private Advisors
Hedged Equity Fund (QP), LP, and the Private Advisors Hedged Equity Fund, Ltd. It should be noted that the two offshore funds will generally invest in
the offshore fund organized by each of the underlying managers, while the onshore 3(c)7 fund will generally invest in each underlying manager’s
onshore fund. While it is anticipated that there will be significant overlap in the managers used by the onshore and offshore funds, they will not be the
same in all cases, and even where the managers are the same, the relative weightings among managers may differ. Effective July 1, 2009, the Private
Advisors Hedged Equity Fund (QP), Ltd. was restructured to utilize a master/feeder structure where the assets of the Private Advisors Hedged Equity
Fund (QP), Ltd. were invested in the Private Advisors Hedged Equity Master Fund, Ltd. ("PAHEMF, Ltd.").

10 The results portrayed reflect the reinvestment of dividends and other earnings. Performance numbers through February 28, 2003 are the results of
Private Advisors Hedged Equity Fund (QP), LP, an onshore, 3(c)7 companion fund to the Private Advisors Hedged Equity Fund, Ltd. Performance after
February 28, 2003 is the result of Private Advisors Hedged Equity Fund, Ltd. The Private Advisors Hedged Equity Fund, Ltd. commenced
operations on March 1, 2003. Results shown are net of all expenses, incentive allocations as applicable, and a 1% management fee. Private Advisors
LLC, as investment manager, will pursue the same investment objective and employ a substantially similar mix of investment strategies in Private
Advisors Hedged Equity Fund, Ltd. as in Private Advisors Hedged Equity Fund QP, LP, except that the Private Advisors Hedged Equity Fund, Ltd. will
generally invest in the offshore fund organized by each of the managers. While it is anticipated that there will be significant overlap in the managers used
by the two funds, it should be noted that they will not be the same in all cases, and even where the managers are the same, the relative weightings
among managers may differ. Effective July 1, 2009, the Private Advisors Hedged Equity Fund, Ltd. was restructured to utilize a master/feeder structure
where the assets of the Private Advisors Hedged Equity Fund, Ltd. were invested in the Private Advisors Hedged Equity Master Fund, Ltd. ("PAHEMF,
Ltd.").

11 The results portrayed reflect the reinvestment of dividends and other earnings. Results shown are net of all expenses, incentive allocations as applicable,
and a 1% management fee. Effective January 1, 2007, the Private Advisors Hedged Equity Fund (QP), LP was restructured to utilize a master/feeder
structure where the assets of the Private Advisors Hedged Equity Fund (QP), LP were invested in the Private Advisors Hedged Equity Master Fund
("PAHEMF").

12 The results portrayed reflect the reinvestment of dividends and other earnings. Performance numbers through December 31, 2003 are the results of
Private Advisors Hedged Equity Fund (QP), LP, a 3(c)7 companion fund to the PA Hedged Equity Fund, LP fund. Performance for the period beginning
January 1, 2004 is the result of PA Hedged Equity Fund, LP. The PA Hedged Equity Fund, LP commenced operations on January 1, 2004.
Results shown are net of all expenses, incentive allocations as applicable, and a 1% management fee. Private Advisors LLC, as investment manager, will
pursue the same investment objective and employ a substantially similar mix of investment strategies in PA Hedged Equity Fund, LP as in Private
Advisors Hedged Equity Fund (QP), LP. While it is anticipated that there will be significant overlap in the managers used by the two funds, it should be
noted that they will not be the same in all cases, and even where the managers are the same, the relative weightings among managers may differ.
Effective January 1, 2007, the PA Hedged Equity Fund, LP was restructured to utilize a master/feeder structure where the assets of the PA Hedged Equity
Fund, LP were invested in the Private Advisors Hedged Equity Master Fund ("PAHEMF").

13 HFRI Equity Hedge Index - The Index is a non-investable product of equity hedge fund of funds. The index is equal weighted (fund weighted) with an
inception of January 1990.

In connection with our registration as an investment adviser under Section 203(c) of the U.S. Investment Advisers Act of 1940, Private Advisors’ Form ADV
Part 2A (“Brochure Supplement”) will always be available to our existing investors by request or at http://www.adviserinfo.sec.gov.

IMPORTANT DISCLOSURES AND RISK SUMMARY

This presentation is intended solely for the recipient. By accepting this presentation, the recipient acknowledges that distribution to any other person is
unauthorized, and any reproduction of this presentation, in whole or in part, or the divulgence of its contents, without the prior written consent of Private
Advisors, LLC is strictly prohibited. This communication is not to be construed as an offer to sell or the solicitation of an offer to buy any security. Any such
offer or solicitation can only be made by means of the delivery of a Confidential Memorandum, which contains a description of the significant risks involved
in such an investment. All figures are estimated and unaudited unless otherwise noted and are shown net of all expenses, management fees and estimated
incentive allocations. All figures reflect the reinvestment of dividends and other earnings, where applicable. Actual returns may differ from the reported
results due to differences in contribution dates, fee structures and new issue eligibility. Past performance is not necessarily indicative of future results.
Notwithstanding the foregoing, please note the following with respect to investment funds managed by Private Advisors, LLC: Investments in the Funds are
meant for sophisticated investors and involve a high degree of risk. Investors can lose all or a substantial portion of their investment. Investment returns
may be volatile. Investments in underlying funds may not be diversified. Funds of funds have substantial fees and expenses which may offset profits.
Investments in the Funds are subject to significant restrictions on transfers. There is no secondary market for interests in the Funds and none is expected
to develop. The underlying funds’ use of leverage in the course of their trading could exacerbate losses. These materials are not intended to constitute
legal, tax or accounting advice or investment recommendations. Prospective investors should consult their own advisors regarding such matters.

Securities managed by Private Advisors, LLC and distributed through NYLIFE Distributors LLC. 901 East Byrd Street, Suite 1400, Richmond, VA 23219.
NYLIFE Distributors LLC is a Member of FINRA & SIPC.

page 5
PART 2A OF FORM ADV: FIRM BROCHURE

Contact: Kevin Rutherford
PRIVATE ADVISORS, LLC
RIVERFRONT PLAZA WEST
901 EAST BYRD STREET, SUITE 1400
RICHMOND, VA 23219
Telephone: [phone]
WWW.PRIVATEADVISORS.COM

March 23, 2016

This Brochure provides information about the qualifications and business practices of
Private Advisors, LLC (“Private Advisors”). If you have any questions about the contents
of this Brochure, please contact Kevin Rutherford at (804) 289-6000 or by email at
[email protected]. The information in this Brochure has not been
approved or verified by the United States Securities and Exchange Commission (the
“SEC”) or by any state securities authority and references in this Brochure to Private
Advisors as a “registered investment adviser” are not intended to imply a certain level of
skill or training.

Additional information about Private Advisors also is available on the SEC’s website at
www.adviserinfo.sec.gov.
ITEM 2 – MATERIAL CHANGES
Private Advisors is updating its Brochure as part of an annual amendment dated March 23, 2016. The
firm does not believe there are any material changes in this update. Included in this amendment are
updates to our list of existing fund advisory clients and related risk disclosures, in addition to certain
clarifying items.
Private Advisors updated its brochure twice since its previous annual amendment filed on March 31,
2015. The first other-than-annual amendment was filed to reflect an arrangement for the payment of
compensation by a financial industry affiliate for the referral of senior loan borrowers and private equity
sponsors to the affiliate. The second other-than-annual amendment reflected the change in Chief
Compliance Officer from James Shannon to Kevin Rutherford, previously Director of Compliance. Mr.
Shannon has remained with the firm as Partner, Chief Financial Officer, and Chief Administrative
Officer.
ii
ITEM 3 - TABLE OF CONTENTS
Page

ITEM 2 – MATERIAL CHANGES ............................................................................................... ii
ITEM 3 - TABLE OF CONTENTS............................................................................................... iii
ITEM 4 – ADVISORY BUSINESS ............................................................................................... 1
ITEM 5 – FEES AND COMPENSATION .................................................................................... 5
ITEM 6 – PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT ............ 10
ITEM 7 – TYPES OF CLIENTS .................................................................................................. 11
ITEM 8 – METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS
....................................................................................................................................................... 12
ITEM 9 – DISCIPLINARY INFORMATION ............................................................................. 31
ITEM 10 – OTHER FINANCIAL INDUSTRY ACTIVITIES AND AFFILIATIONS ............. 32
ITEM 12 – BROKERAGE PRACTICES ..................................................................................... 39
ITEM 13 – REVIEW OF ACCOUNTS........................................................................................ 41
ITEM 14 – CLIENT REFERRALS AND OTHER COMPENSATION...................................... 42
ITEM 15 – CUSTODY ................................................................................................................. 43
ITEM 16 – INVESTMENT DISCRETION ................................................................................. 44
ITEM 17 – VOTING CLIENT SECURITIES .............................................................................. 45
ITEM 18 – FINANCIAL INFORMATION ................................................................................. 46

iii
ITEM 4 – ADVISORY BUSINESS
A. General Description of Advisory Firm
Private Advisors is a Delaware limited liability company that commenced operations in January 1997,
became an SEC-registered investment adviser on July 6, 1998, and became registered with the
Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator on July 24, 1998. On
December 30, 2010, Private Advisors entered into a strategic alliance with New York Life Investments, a
wholly owned subsidiary of New York Life Insurance Company. The Principal owner of Private
Advisors is New York Life Insurance Company (“NYL”), which owns a substantial portion of Private
Advisors through New York Life Investment Management Holdings, LLC (“NYLIM”), an intermediate
subsidiary of NYL. Note that NYL is a mutual life-insurance company and does not have shareholders.
B. Description of Advisory Services
Private Advisors’ principal activity is providing institutional investors and high net worth clients with
professional management of hedge fund and private equity investments, principally via funds-of-funds,
including numerous U.S.-domiciled limited partnerships and Cayman-domiciled entities (each a “Fund”
and together the “Funds”), and in some instances using a traditional master/feeder structure. Private
Advisors may recommend investment allocations to private investment funds (“Portfolio Funds”)
managed by unaffiliated investment managers (“Portfolio Managers”). Following is a list of the hedge
fund and private equity Funds which primarily employ the fund-of-funds strategy (the “Funds-of-
Funds”):
1) Private Advisors Stable Value ERISA Fund, Ltd.
2) Private Advisors Stable Value Master Fund, Ltd.
3) Private Advisors Stable Value Fund, Ltd.
4) PA Stable Value Fund, Ltd.
5) Private Advisors Hedged Equity Master Fund
6) Private Advisors Hedged Equity Fund (QP), LP
7) PA Hedged Equity Fund, LP
8) Private Advisors Hedged Equity Master Fund, Ltd.
9) Private Advisors Hedged Equity Fund (QP), Ltd.
10) Private Advisors Hedged Equity Fund, Ltd.
11) Private Advisors Distressed Opportunities Fund, LP
12) The Hedged Strategies Fund (QP), Ltd.
13) Private Advisors Small Company Buyout Fund II, LP
14) Private Advisors Small Company Buyout Fund III, LP
15) Private Advisors Small Company Buyout Fund IV, LP
16) Private Advisors Small Company Buyout Fund V, LP
17) Private Advisors Small Company Buyout V- ERISA Fund, LP
18) Private Advisors Small Company Private Equity Fund VI, LP
19) Private Advisors Small Company Private Equity Fund VI (Cayman), LP.
20) Private Advisors Small Company Private Equity Fund VII, LP
21) Private Advisors Small Company Private Equity Fund VII (Cayman), LP.
22) Cuyahoga Capital Partners I, L.P.
23) Cuyahoga Capital Partners II LP
24) Cuyahoga Capital Partners III LP
25) Cuyahoga Capital Partners IV LP
1
26) Cuyahoga Capital Emerging Buyout Partners LP
27) Private Advisors Secondary Fund V, LP
28) Private Advisors Real Assets Fund, LP

The following Funds invest in a diversified portfolio of coinvestment opportunities whereby the Fund
invests alongside a sponsor who leads all aspects of the transaction including due diligence, structuring,
value creation, monitoring and exit strategy:
1) Private Advisors Coinvestment Fund, LP
2) Private Advisors Coinvestment Fund II, LP
3) Private Advisors Coinvestment Fund III, LP
4) Private Advisors Coinvestment Fund IV, LP
5) Private Advisors Small Company Coinvestment Fund, LP

Private Advisors also serves as a sub-adviser to the following registered investment companies (the
“RICs”):
1) Private Advisors Alternative Strategies Master Fund (the “Master RIC”)
2) Private Advisors Alternative Strategies Fund (the “Feeder RIC”)

New York Life Investment Management LLC, an affiliate of Private Advisors, serves as the RICs’
investment manager. At this time, the RICs are closed to new investments and are in the process of being
liquidated.

Private Advisors also provides discretionary investment advisory services to the following direct
investment hedge funds (collectively, the “Direct Investment Funds”):
1) Undiscovered Value Master Fund SPC (a Cayman Segregated Portfolio Company) (the
“Master UVF”)
2) Undiscovered Value Fund, LP (the “Onshore UVF”)
3) Undiscovered Value Fund, Ltd. (the “Offshore UVF”)

Further, Private Advisors serves as a sub-adviser in providing consulting and non-discretionary
investment advisory services to a private fund for which an affiliate is the investment manager (the “Sub-
Advised Fund”). In addition, Private Advisors provides discretionary and non-discretionary investment
advisory services to separately managed accounts (the “Managed Accounts,” and together with the Funds,
the RICs, the Sub-Advised Fund and the Direct Investment Funds, the “Advisory Clients”).
Private Advisors serves as General Partner to several Funds which are organized as Delaware limited
partnerships, and serves as Investment Manager to certain Funds which are organized as Cayman entities.
Affiliates of Private Advisors also serve as General Partner to certain Funds, including: PASCBF III GP,
LLC, which serves as General Partner to Private Advisors Small Company Buyout Fund III, LP;
PASCBF IV GP, LLC, which serves as General Partner to Private Advisors Small Company Buyout Fund
IV, LP; PASCBF V GP, LLC, which serves as General Partner to Private Advisors Small Company
Buyout Fund V, LP and Private Advisors Small Company Buyout V- ERISA Fund, LP; PASCPEF VI
GP, LLC, which serves as General Partner to Private Advisors Small Company Private Equity Fund VI,
LP and to the Private Advisors Small Company Private Equity Fund VI (Cayman), LP; PASCPEF VII
GP, LLC, which serves as General Partner to Private Advisors Small Company Private Equity Fund VII,
LP and to the Private Advisors Small Company Private Equity Fund VII (Cayman), LP; PACIF GP, LLC,
which serves as General Partner to Private Advisors Coinvestment Fund, LP; PACIF II GP, LLC, which
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