Toronado Partners, LLC (“Toronado” or the “Investment Adviser”), a California limited
liability company, was formed in March 2016 as an investment firm with a long/short equity
technology focus. Toronado’s principal place of business is in San Francisco, California.
Toronado Capital Management, LLC (the “General Partner”), a Delaware limited liability
company under common control with Toronado, serves as the Master Fund’s (defined below)
general partner.
Toronado provides investment advisory services on a discretionary basis to pooled investment
vehicles organized in a “mini master-feeder” structure. Toronado currently provides advisory
services to Toronado Fund, L.P., a Delaware limited partnership (the “Master Fund”) and
Toronado Offshore Fund, Ltd., a Cayman Islands exempted company (the “Offshore Fund”
and collectively, the “Funds”), each of which is a private investment fund offered to financially
sophisticated individuals and institutional investors.
Toronado also provides investment advisory services to an institutional client as Trading
Manager to a pooled investment vehicle (the “SMA” and collectively with the Funds the
“Clients”). Managing the SMA creates conflicts of interest in that we may have an incentive to
favor a specific Fund or SMA to the detriment of others due to factors such as differing fee
structures. The specific terms applicable to our SMA, including fees, redemption rights, and
investment restrictions, are set forth in the Trading Management Agreement and may differ
from those applicable to the Funds or other separately managed accounts that we may service
in the future. Please refer to Item 10 for additional information regarding the conflicts of interest
presented by such arrangements.
The principal owner of the business is John Stephen Perkins. Toronado currently employees five
full-time employees.
Toronado manages the accounts of the Clients in accordance with each Client’s strategies,
restrictions and guidelines.
Toronado has complete discretion over investment decisions for the Funds, and investors have
no authority to change a Fund’s investment objectives
or limitations. Investors in the Funds
have no right to remove or replace Toronado. Information about each Fund can be found in the
relevant offering documents, which consists of the Confidential Explanatory Memorandum for
the Offshore Fund or the Confidential Private Placement Memorandum and Limited Partnership
Agreement for the Master Fund (collectively the “Fund Governing Documents”).
Toronado acts as trading manager to the SMA, and has discretion over investment and trading
decisions, per the terms of the Trading Manager Agreement (collectively with the Fund
Governing Documents the “Governing Documents”). The SMA is managed according to a
strategy that has similarities to those of our Funds but it invests long-only (it does not short
securities) and is subject to express investment restrictions and other special terms that are
different than or do not apply to our Funds. These special terms are subject to negotiation on a
client-by-client basis.
Please refer to Item 8 of this brochure for additional information regarding our investment
strategies and their associated risks. The information provided above merely summarizes the
detailed information provided in the appropriate Client Governing Documents. Prospective
investors should be aware of additional risks and requirements associated with any investment
and should refer to the Governing Documents for important additional information and
considerations.
Toronado does not participate in wrap fee programs.
As of December 31, 2023, Toronado had $378,846,879 in regulatory assets under management.
As of December 31, 2023, Toronado had total net assets under management of approximately
$222,334,428 This number differs from Toronado’s “regulatory assets under management”
reported above and on Form ADV Part 1 because it reflects the net value of the assets under
management. “Regulatory assets under management” is a gross assets measurement adopted by
the SEC that does not allow for the deduction of liabilities associated with borrowing securities
to affect a short sale and other accrued but unpaid liabilities.
Toronado does not provide non-discretionary investment advice.