NPORT-EX 2 multig_123122.htm HTML

SkyBridge Multi-Adviser Hedge Fund Portfolios LLC

Consolidated Schedule of Investments

December 31, 2022 (Unaudited)

 

 

    First
Acquisition
Date
    Cost     Fair Value     % of
Shareholders’
Capital
 

Investments in Investment Funds - ‡

       

Cryptocurrency and Digital Assets

       

Bitwise Ethereum Fund, LLC - c,i

    08/01/2022     $ 8,000,001       $ 5,524,386         0.49%    

BlackRock Trust 91 - a,i

    09/30/2022       7,500,000         6,287,934         0.56       

Brevan Howard Digital Asset Multi-Strategy Fund, L.P. Class B - b,g

    04/01/2022       128,304,489         96,279,404         8.52       

Brevan Howard Digital Asset Multi-Strategy Fund, L.P. Class B - side pocket - f

    04/01/2022       21,695,511         18,809,821         1.66       

Galaxy Institutional Ethereum Fund, LP Class B - c,i

    07/01/2021       28,806,000         14,844,291         1.31       

Galaxy Institutional Ethereum Fund, Ltd Class B - c,i

    07/01/2021       15,800,000         8,109,381         0.72       

Multicoin Capital Offshore, SPC - b,h

    12/01/2021       34,770,284         4,280,626         0.38       

Multicoin Capital Offshore, SPC - side pocket - f

    12/01/2021       36,729,717         2,068,117         0.18       

NYDIG Institutional Bitcoin Fund LP - a,i

    12/11/2020       142,268,331         89,908,987         7.95       

Polychain Global Ltd. - d,h

    01/01/2022       31,162,325         5,021,233         0.45       

Polychain Global Ltd. - side pocket - f

    01/01/2022       15,837,675         4,882,780         0.43       

Pomp Bracket Digital Assets IV, LLC - f

    08/05/2021       10,099,989         10,047,810         0.89       
   

 

 

   

 

 

   

 

 

 

Total Cryptocurrency and Digital Assets

      480,974,322         266,064,770         23.54       
   

 

 

   

 

 

   

 

 

 

Directional Equity

       

Armistice Capital Offshore Fund Ltd. - side pocket - f

    11/01/2020       26,067         22,392         0.00       

Coatue Offshore Fund Ltd Class M-6 - b

    01/01/2021       3,261,149         2,547,325         0.23       

Coatue Offshore Fund Ltd Liquidation Account - f

    01/01/2021       3,968,595         2,738,374         0.24       

Harvest Claro, LLC - f

    04/01/2021       18,352,305         3,919,424         0.35       

Redmile Capital Offshore Fund, Ltd. Class C - f

    11/01/2020       2,546,977         543,878         0.05       

Soma Offshore Ltd - b,g

    04/01/2021       5,872,152         3,376,457         0.30       

Third Point Venture Offshore Fund I LP - e

    10/14/2021       7,775,160         7,167,445         0.63       

Whale Rock Flagship Fund Ltd - side pocket - f

    11/01/2020       6,088,332         2,974,409         0.26       
   

 

 

   

 

 

   

 

 

 

Total Directional Equity

          47,890,737             23,289,704         2.06       
   

 

 

   

 

 

   

 

 

 

Event Driven

       

Axonic Credit Opportunities Fund L.P. - b

    08/01/2011       44,010,007         59,820,985         5.29       

Axonic Credit Opportunities Overseas Fund, Ltd. - b

    08/01/2011       46,292,270         58,873,994         5.21       

Marathon European Credit Opportunity Fund II LP - e

    02/01/2014       3,078,653         4,193,402         0.37       

Medalist Partners Harvest SPV Ltd - f,n

    04/01/2021       31,440,147         15,890,271         1.41       

Seer Capital Partners Fund L.P. - f

    01/01/2012       4,965,465         6,258,939         0.55       

Seer Capital Partners Offshore Fund II Ltd. - f

    01/01/2020       31,989,703         26,479,602         2.34       

Seer Capital Partners Offshore Fund Ltd. - f

    01/01/2016       5,253,879         6,304,598         0.56       

Third Point Offshore Fund, Ltd. - b

    09/01/2020       173,022,673         172,226,264         15.24       
   

 

 

   

 

 

   

 

 

 

Total Event Driven

      340,052,797         350,048,055         30.97       
   

 

 

   

 

 

   

 

 

 


SkyBridge Multi-Adviser Hedge Fund Portfolios LLC

Consolidated Schedule of Investments (continued)

December 31, 2022 (Unaudited)

 

 

    First
Acquisition
Date
    Cost     Fair Value     % of
Shareholders’
Capital
 

Investments in Investment Funds - ‡ (continued)

       

Relative Value

       

Millennium International, Ltd. - b,g

    08/01/2015     $ 35,525,349       $ 55,100,039         4.87%    

Point72 Capital International, Ltd. - b,g

    06/01/2020       156,293,318         208,952,834         18.49       
   

 

 

   

 

 

   

 

 

 

Total Relative Value

      191,818,667         264,052,873         23.36       
   

 

 

   

 

 

   

 

 

 

Total Investments in Investment Funds - *

    $ 1,060,736,523†     $    903,455,402         79.93       
   

 

 

     

Investments in Securities

       

Antigua and Barbuda

       

Private Equity - ‡

       

FTX Trading Ltd. - j,*

       

Common stock (244,196 shares)

    10/21/2021     $ 5,777,189       $ —         0.00%    

Series B preferred stock (352,658 shares)

    08/02/2022       16,346,333         —         0.00       

Series B-1 preferred stock (61,049 shares)

    10/21/2021       2,222,794         —         0.00       

Series C preferred stock (265,710 shares)

    01/25/2022       12,316,137         —         0.00       

Canada

       

Exchange Traded Fund (ETF)

       

CI Galaxy Ethereum ETF (1,573,140 shares)

    10/26/2021       21,727,807         8,463,493         0.75       

Cyprus

       

Private Equity - ‡

       

Genesis Digital Assets Limited - k,*

       

Ordinary shares (8 shares)

    01/24/2022       24,900,962         2,320,745         0.20       

Series A preferred shares (17 shares)

    08/01/2021       35,416,667         4,931,584         0.44       

United States

       

Private Equity - ‡

       

Chime Financial, Inc. (Series F preferred) (373,534 shares) - l,*

    11/24/2021       25,799,993         16,009,486         1.42       

Homebrew Ventures I, L.P. - l,m,*

    07/01/2021       11,987,538         7,344,206         0.65       

Lightning Labs, Inc. - j,*

    01/01/2022       2,000,000         1,794,462         0.16       

MoonPay SPV LLC - l,*

    02/01/2022       1,000,000         589,613         0.05       

New York Digital Investment Group LLC Class B2 (945 shares) - j,*

    08/19/2021       22,620,000         5,332,306         0.47       

Nova Labs, Inc.

       

Common stock (187,014 shares) - j,*

    04/15/2022       9,724,728         5,672,332         0.50       

Payward, Inc. - j,*

       

Series A preferred stock (352,861 shares)

    12/01/2021       18,090,987         8,503,107         0.75       

Series seed preferred stock (258,000 shares)

    11/01/2021       13,287,000         6,245,142         0.55       


SkyBridge Multi-Adviser Hedge Fund Portfolios LLC

Consolidated Schedule of Investments (continued)

December 31, 2022 (Unaudited)

 

 

    First
Acquisition
Date
    Cost     Fair Value     % of
Shareholders’
Capital
 

Investments in Securities (continued)

       

United States (continued)

       

Private Equity - ‡ (continued)

       

West Realm Shires Inc. - j,*

       

Class A common stock (1,310,000 shares)

    11/10/2021     $ 199,945       $ —         0.00%    

Series A preferred stock (8,533,916 shares)

    01/25/2022       19,499,998         —         0.00       
   

 

 

   

 

 

   

 

 

 

Total Investments in Securities

    $ 242,918,078†     $ 67,206,476         5.94%    
   

 

 

     

Other Assets, less Liabilities

        159,692,267         14.13%    
     

 

 

   

 

 

 

Shareholders’ Capital

      $ 1,130,354,145             100.00%    
     

 

 

   

 

 

 

Note: Investments in underlying Investment Funds are categorized by investment strategy.

a

Redemptions permitted daily.

b

Redemptions permitted quarterly.

c

Redemptions permitted weekly.

d

Redemptions permitted semi-annually.

e

Term vehicles with multi-year hard lock, subject to periodic distributions. The Company held $11,360,847 (1.26% of total Investments in Investment Funds) of term vehicles at December 31, 2022.

f

Illiquid, redeemable only when underlying investment is realized or converted to liquid interest in Investment Fund. The Company held $100,940,415 (11.17% of total Investments in Investment Funds) of illiquid investments at December 31, 2022.

g

As of December 31, 2022, subject to gated redemptions (these are investor-level percentage limitations on redemption).

h

Subject to a current lock-up on liquidity provisions on a greater than quarterly basis.

i

The Investment Fund is held by SkyBridge Multi-Adviser Hedge Fund Portfolios Sub-Fund I Ltd. (the “Sub-Fund”), a wholly-owned subsidiary of the Company. Investment Funds held by the Sub-Fund represent 13.80% of the total Investments in Investment Funds.

j

The industry for these securities is digital asset trading & servicing.

k

The industry for these securities is digital asset mining.

l

The industry for these securities is financial technology.

m

Forward agreement to receive shares of Plaid Inc. at a future date.

n

The investment is a restructuring of the Company’s interest in Medalist Partners Harvest Fund, LP and Medalist Partners Harvest Fund Ltd, which were first acquired on 8/1/2016 and 7/1/2017, respectively.

The Company’s Investments in Investment Funds and private equities are exempt from registration under the Securities Act of 1933, as amended, and contain restrictions on resale and cannot be sold publicly.

*

All Investments in Investment Funds and securities are non-income producing.

The cost and unrealized appreciation/(depreciation) of investments as of December 31, 2022, as computed for federal tax purposes, were as follows:

 

Aggregate cost

   $       1,377,988,624                                                                                                                                          
  

 

 

    

Gross unrealized appreciation

   $ 101,957,311      

Gross unrealized depreciation

     (509,284,057)     
  

 

 

    

Net unrealized depreciation

   $ (407,326,746)     
  

 

 

    


SkyBridge Multi-Adviser Hedge Fund Portfolios LLC

Notes to Schedule of Investments

December 31, 2022 (Unaudited)

 

 

1.

Fair Value Disclosures

In accordance with the authoritative guidance on fair value measurements and disclosures under accounting principles generally accepted in the United States of America (“GAAP”), SkyBridge Multi-Adviser Hedge Fund Portfolios LLC (the “Company”) discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurement). The guidance establishes three levels of fair value as listed below.

Level 1- Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2- Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;

Level 3- Inputs that are unobservable.

The notion of unobservable inputs is intended to allow for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Under Level 3, the owner of an asset must determine valuation based on their own assumptions about what market participants would take into account in determining the fair value of the asset, using the best information available.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Adviser. The Adviser considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The following is a summary of the Company’s assets measured at fair value as of December 31, 2022, by Accounting Standards Codification (“ASC”) 820 fair value hierarchy levels:

 

Description   

Level 1

Quoted Prices

    

Level 2

Significant
Observable Inputs

    

Level 3

Significant
Unobservable
Inputs

    

Investments

Measured at Net

Asset Value

    

Total Fair Value

at December 31,
2022

 

Investments in Investment Funds

    $                       —          $                       —                 $             3,919,424        $       899,535,978        $       903,455,402        

Investments in Securities

              

Exchange Traded Fund (ETF)

    $ 8,463,493          $                       —                 $ —        $ —        $ 8,463,493        

Private Equity

    $                       —          $                       —                 $ 58,742,983        $ —        $ 58,742,983        


SkyBridge Multi-Adviser Hedge Fund Portfolios LLC

Notes to Schedule of Investments (continued)

December 31, 2022 (Unaudited)

 

 

The Company’s investments in Investment Funds for which fair value is measured using NAV per share as a practical expedient, in the amount of $899,535,978 have not been categorized in the fair value hierarchy. This amount includes $124,674,979 held by SkyBridge Multi-Adviser Hedge Fund Portfolios Sub-Fund I Ltd. (the “Sub-Fund”), which was organized as an exempted Cayman Islands limited liability company on December 9, 2020 and is a wholly owned subsidiary of the Company. $3,919,424 of the total investments in Investment Funds previously not categorized in the fair value hierarchy transferred during the period to Level 3 as a result of a change in valuation methodology used to value the Company’s investment in Harvest Claro, LLC. The Company also has investments in securities in the amount of $67,206,476.

The following table details purchases, sales and in-kind transfer of the investments in which significant unobservable inputs (Level 3) were used in determining value:

 

             Fair Value Measurements Using Level 3 Inputs  
              Directional Equity                Private Equity                    Total Investments          
  

 

 

Purchases

   $        1,037,477                $        28,723,833          $    29,761,310              

There was $(14,432,881) and $(162,447,288) unrealized depreciation on directional equity and private equity respectively, for the period ending December 31, 2022.    

The following table summarizes the valuation methodology and significant unobservable inputs used to estimate the fair value of Level 3 investments as of December 31, 2022.

 

Type of Level 3 Investment  

Fair Value as of

December 31, 2022

    Valuation Technique  

Unobservable

Input

 

Input

(weighted average)  

 

Investments in Investment Funds

       

    Directional Equity

  $ 3,919,424     Market comparable companies   Revenue Multiple     3.8x-4.3x  

Investments in Securities

       

    Private Equity

  $             58,742,983     Market comparable companies   Revenue Multiple     11.2x-14.1x  
    Market comparable companies   EBITDA Multiple     2x-4x  

The following is a summary of the investment strategies, their liquidity and redemption notice periods and any restrictions on the liquidity provisions of the investments in Investment Funds held by the Company as of December 31, 2022 and measured at fair value using the NAV per share practical expedient. Investment Funds with no current redemption restrictions may be subject to future gates, lock-up provisions or other restrictions, in accordance with their offering documents which would be considered in fair value measurement and disclosure.

Cryptocurrency and Digital Assets Investment Managers may pursue a variety of investment strategies in managing digital assets of an Investment Fund, and the Company may invest in Investment Funds that provide access to a particular digital asset or assets without a discretionary investment strategy. The Company may also invest in Investment Funds whose Investment Managers have discretion to manage a diversified portfolio of digital assets. The Company and Investment


SkyBridge Multi-Adviser Hedge Fund Portfolios LLC

Notes to Schedule of Investments (continued)

December 31, 2022 (Unaudited)

 

 

Funds may hold long and short positions in digital assets. The Company and Investment Funds may also invest in securities of companies related, in whole or in part, to digital assets or digital asset technologies (including digital asset miners, payment technologies, digital security, or crypto trading exchanges), or that otherwise have direct or indirect exposure to emerging technologies. The Company and Investment Funds may invest in derivative contracts on digital assets, including cryptocurrency swap agreements, for hedging purposes and non-hedging purposes. The Company may use its assets to offset the carbon footprint associated with the Company’s exposure to Bitcoin and other digital assets. The Investment Funds within this strategy have daily to semi-annual liquidity, subject to a 1 to 120 day notice period. Investment Funds in this strategy, representing approximately 13 percent of the Investment Funds in this strategy are illiquid or side pocket investments with suspended redemptions. Approximately 36 percent of the Investment Funds in this strategy have gated redemptions. Approximately 3 percent of the Investment Funds in this strategy are subject to hard lock up provisions to be lifted after 24 months. The remaining approximately 48 percent of the Investment Funds in this strategy can be redeemed with no restrictions as of the measurement date.

Directional Equity funds take long and short stock positions. The manager may attempt to profit from both long and short stock positions independently, or profit from the relative outperformance of long positions against short positions. The stock picking and portfolio construction process is usually based on bottom-up fundamental stock analysis, but may also include top-down macro-based views, market trends and sentiment factors. Directional equity managers may specialize by region (e.g., global, U.S., Europe or Japan) or by sector. No assurance can be given that the managers will be able to correctly locate profitable trading opportunities, and such opportunities may be adversely affected by unforeseen events. In addition, short selling creates the risk of loss if the security that has been sold short appreciates in value. Generally, the Investment Funds within this strategy have quarterly liquidity, subject to a 45 to 60 day notice period. Investment Funds in this strategy, representing approximately 44 percent of the Investment Funds in this strategy are illiquid or side pocket investments with suspended redemptions. Approximately 14 percent of the Investment Funds in this strategy have gated redemptions, which are estimated to be lifted after 12 months. Approximately 31 percent of the Investment Funds in this strategy are term vehicles with multi-year hard locks subject to periodic distributions. The remaining approximately 11 percent of the Investment Funds in this strategy can be redeemed with no restrictions as of the measurement date.

Event Driven strategies involve investing in opportunities created by significant transactional events such as spin-offs, mergers and acquisitions, bankruptcies, recapitalizations and share buybacks. Event driven strategies include “merger arbitrage” and “distressed securities”. Generally, the Investment Funds within this strategy have quarterly liquidity, subject to a 60 to 90 day notice period. Investment Funds in this strategy, representing approximately 16 percent of the Investment Funds in this strategy are illiquid or side pocket investments with suspended redemptions. Approximately 1 percent of the Investment Funds in this strategy are term vehicles with multi-year hard locks subject to periodic distributions. The remaining approximately 83 percent of the Investment Funds in this strategy can be redeemed with no restrictions as of the measurement date.

Relative Value strategies seek to take advantage of specific pricing anomalies, while also seeking to maintain minimal exposure to systematic market risk. This may be achieved by purchasing one


SkyBridge Multi-Adviser Hedge Fund Portfolios LLC

Notes to Schedule of Investments (continued)

December 31, 2022 (Unaudited)

 

 

security previously believed to be undervalued, while selling short another security perceived to be overvalued. Relative value arbitrage strategies include equity market neutral, statistical arbitrage, convertible arbitrage, and fixed income arbitrage. Some investment managers classified as multi-strategy relative value arbitrage use a combination of these substrategies. Generally, the Investment Funds within this strategy have quarterly liquidity, subject to a 45 to 90 day notice period. 100 percent of the Investment Funds in this strategy have gated redemptions, which are estimated to be lifted after 12 months.

Private Equity Investments: The Company also makes private investments in emerging portfolio companies (e.g., venture capital and growth equity investments) and may, on occasion, purchase and hold public equities. Equity investments are valued at initial transaction price and may subsequently be valued using valuation models in the absence of readily observable market prices. Valuation models are generally based on (i) earnings before interest, taxes, depreciation and amortization (EBITDA) multiples analysis, (ii) the value attributable to the equity instrument from the enterprise value of the portfolio company or the proceeds that would be received if the portfolio company liquidated, and (iii) market and income (discounted cash flow) approaches, in which various internal and external factors are considered. Factors include key financial inputs and recent public and private transactions for comparable investments. Key inputs used for the discounted cash flow approach include the weighted average cost of capital and investment terminal values derived from EBITDA multiples. An illiquidity discount may be applied where appropriate.

The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the investment. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, determining fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a readily available market existed for such assets or liabilities and the values that may ultimately be realized. Accordingly, the degree of judgment exercised by the Manager in determining fair value is greatest for assets or liabilities categorized as Level 3.

The Company follows the authoritative guidance under GAAP on determining fair value when the volume and level of activity for the asset or liability have significantly changed and identifying transactions that are not orderly. Accordingly, if the Company determines that either the volume and/or level of activity for an asset or liability has significantly changed (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances.

The guidance also provides a list of factors to determine whether there has been a significant change in relation to normal market activity. Regardless of the valuation technique and inputs used, the objective for the fair value measurement in those circumstances is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price.