Advantage Advisers Xanthus Fund, L.L.C.
Notes to Financial Statements – June 30, 2023 (Unaudited) (continued)
3.
Advisory Fee, Administration Fee, Related Party Transactions and Other
(continued)
paid to MSFS was $82,083 during the six months ended June 30, 2023, and is included in miscellaneous expense in the Statement of Operations.
Oppenheimer acts as the non-exclusive placement agent for the Company, without special compensation from the Company, and bears all costs associated with its activities as placement agent. The placement agent is entitled to charge a sales commission (placement fee) to investors of up to 3% (up to 3.1% of the amount invested) in connection with investor purchases of Interests, in its discretion. Placement fees, if any, will reduce the amount of a Member’s investment in the Company and will neither constitute an investment made by the investor in the Company nor form part of the assets of the Company. For the six months ended June 30, 2023, placement fees earned by Oppenheimer were $3,500.
4.
Indemnifications
The Company has entered into various contracts that contain routine indemnification clauses. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote.
5.
Securities Transactions
Aggregate purchases and sales of investment securities, excluding short-term securities, for the six months ended June 30, 2023, were $1,178,105,972 and $1,288,874,356, respectively. Aggregate purchases and sales of securities sold, not yet purchased, excluding short-term securities, for the six months ended June 30, 2023, were $2,199,674,863 and $2,136,694,593, respectively.
At December 31, 2022, the aggregate cost for Federal income tax purposes of portfolio securities and securities sold, not yet purchased was $1,922,441,397 and $910,636,147, respectively.
For Federal income tax purposes, at December 31, 2022, accumulated net unrealized gain on portfolio securities and securities sold, not yet purchased was $307,771,387, consisting of $648,606,805 gross unrealized gain and $340,835,418 gross unrealized loss.
6.
Due from / to Broker
The Company’s prime brokers are Morgan Stanley & Co, Inc. (“Morgan Stanley”), Merrill Lynch Professional Clearing Corp. (“Merrill Lynch”) and Goldman Sachs & Co., LLC (“Goldman Sachs”) (collectively the “Prime Brokers”).
Due from brokers on the Statement of Assets, Liabilities and Members’ Capital primarily represents proceeds from securities sold, not yet purchased, net of excess cash, held at the Prime Brokers as of June 30, 2023, which serves as collateral for securities sold, not yet purchased and is restricted.