Description of the Firm
Skye Global Management LP (“Skye Global”) is a privately-owned limited liability
company organized under the laws of the state of Delaware, with its principal place of
business in West Palm Beach, Florida. Skye Global was formed in 2012, and began
providing investment advisory services in July 2016. James Sterne is the indirect owner
of Skye Global. Specifically, Skye Global Management GP LLC, a Delaware limited
liability company, which owns 1% of Skye Global, serves as the general partner of Skye
Global and is wholly owned by Mr. Sterne. Skye Global Holdings LP, a Delaware limited
partnership, which owns 99% of Skye Global is the sole limited partner of Skye Global,
and is wholly owned by the James M. Sterne 2016 Management Trust. Skye Global serves
as the investment manager to several private investment funds and as the investment
adviser to one managed account (the “Managed Account”). Skye Global does not
participate in wrap fee programs.
Advisory Services Offered
The Funds
Skye Global serves as the investment manager (the “Investment Manager”) to Skye Global
Fund LLC, a Delaware limited liability company (the “U.S. Fund”), Skye Global Fund,
Ltd., a Cayman Islands exempted company (the “Offshore Fund,” and together with the
U.S. Fund, the “Feeder Funds”) and as the adviser (the “Adviser”) to Skye Global Master
Fund Ltd., a Cayman Islands exempted company (the “Master Fund,” and together with
the Feeder Funds, the “Funds”) pursuant to an investment management agreement between
Skye Global and each client Fund. All of Skye Global’s Fund clients are private investment
funds that are exempt from registration with the Securities and Exchange Commission. In
its capacity as Investment Manager to the Feeder Funds, Skye Global provides certain non-
discretionary operational and administrative services to the Feeder Funds but has no
discretion with respect to the investment of their assets or their operation. The Feeder Funds
seek to attain their investment objectives by investing all of their investable assets other
than cash held on a short-term basis pending (i) contribution to the Master Fund; (ii)
distribution to an investor; or (iii) payment of expenses incurred solely by the Fund,
through a master feeder structure in the Master Fund, for which Skye Global serves as the
Adviser. In its capacity as Adviser to the Master Fund, Skye Global is generally
responsible for managing the assets of the Master Fund, in accordance with the specific
investment guidelines set forth in the confidential private placement memorandum of each
of the Feeder Funds. Subject to these investment guidelines, Skye Global has a limited
power of attorney to act and has complete discretion and authority to manage the Master
Fund’s assets. Skye Global, in its capacity as Adviser to the Master Fund, is authorized to
make all investment decisions, buy and sell securities, issue instructions to the Master
Fund’s custodians, select broker dealers to execute securities transactions and vote proxies
and make similar decisions. Underlying investors in Skye Global’s client Funds do not
have the ability to impose restrictions on investing in certain securities or types of
securities. Skye Global offers and sells interests in the U.S. Fund in private transactions
solely to accredited investors who are also qualified purchasers, as defined by law. Skye
Global offers and sells shares in the Offshore Fund, to a limited number of sophisticated
non-U.S. investors and U.S. investors
who are tax exempt and qualify as accredited
investors and qualified purchasers.
Skye Global’s investment performance is dependent upon the selection of long investments
that outperform the market and short investments that underperform the market. While the
confidential private placement memoranda for each of the Feeder Funds give Skye Global
broad discretion with respect to the types of securities the Master Fund may purchase, Skye
Global, in its capacity as Adviser to the Master Fund, will purchase and sell primarily
publicly traded equity and equity-linked securities, derivatives, including, on a limited
basis, virtual currency derivatives, and other assets in global markets, with an emphasis
not only on issuer-specific, but where appropriate, and when market conditions
allow, on geopolitical and macro analysis to understand position downside. Skye
Globalwillalsoimplementsinglenameshortsellingandattempttolimitdrawdowns
thoughportfoliohedging.Performance is primarily driven by the relative performance
of the Master Fund’s long and short investments rather than the performance of the
markets.
Although the confidential private placement memoranda for each of the Feeder Funds give
Skye Global broad discretion with respect to the position sizing, the Master Fund’s
portfolio generally will consist of 10-15 positions, and 25-50 short positions (both single
name shorts and index hedges), along with macro and/or certain other investments.
Although it can vary over time, the Master Fund’s total equities gross exposure will
typically range between 50% to 300% and its net exposure will typically range from 0% to
120% net long. Investment trades are generally allocated among the Funds to achieve
holdings that are proportional to their respective net assets.
The Managed Accounts
To the extent appropriate for a large or strategic investor, Skye Global will establish a
separately managed account. Skye Global currently provides investment advisory services
to one Managed Account that is a university foundation. The advisory services are tailored
to the investment objectives and/or restrictions established by the Managed Account client.
Fee arrangements and terms for each Managed Account are individually negotiated.
Accordingly, a managed account may be subject to different terms and fees than those of
the Funds. Managed account relationships are generally subject to significant account
minimums.
The Managed Account’s investment objective and guidelines are substantially the same as
those applicable to the Master Fund. except that pursuant to the investment guidelines of
the Managed Account, (i) it is not permitted to invest in private equity, (ii) there are certain
categories of securities that the Managed Account has instructed should not be included in
its portfolio, and (iii) since the Managed Account only has one prime broker, it is not able
to participate in all short transactions. Other than as set forth above, the Managed Account
and the Master Fund will be managed to the extent possible, pari passu. These details are
outlined in the agreement between Skye Global and the Managed Account client.
As a result of this sharing of investments, the efforts of the members of Skye Global’s
investment and trading teams are focused on one set of investment decisions.
Assets under Management
As of December 31, 2023, Skye Global managed, on a discretionary basis, client assets
totaling $3,657,347,918. Skye Global does not manage client assets on a non-discretionary
basis.