Fees and Compensation — Form ADV Part 2A (3/28/2013)
[Brochure]
Fees and Compensation:
The management fees to be charged by ACM for its investment supervisory services will be
calculated per fund or portfolio as a percentage of net assets. Fees are charged to the ACM Funds
quarterly in arrears and deducted from the capital accounts of each limited partner. The
management fee that will be charged by ACM for its investment supervisory services will be
calculated as a percentage of assets under management, and will equal two percent (2.00%) of
each ACM Fund's net asset value (“NAV”) per annum. Management fees are charged quarterly
in arrears based upon the last day of each fiscal quarter, and are prorated for any partial quarter.
ACM may agree to certain fee concessions, including fee reductions and rebates to investors. It
should be noted that ACM and/or the ACM Funds may entered into side letter agreements which
provide different rights with respect to fees (including arrangements for lower fees), performance
fees, performance reporting and portfolio transparency.
Each ACM Fund will pay all of its own direct expenses, including but not limited to
organizational expenses, custodial and administrative charges, and legal and accounting fees.
Accounting and reporting fees are calculated and deducted from each limited partner’s capital
account on a monthly basis.
There will be no termination or redemption option for investors in the ACM Funds due to the
illiquid nature of the underlying investments and the fact that the Funds will be in liquidation. If
any liquidity is provided it will be at the sole discretion of ACM.
Performance-Based Fees and Side-by-Side Management
ACM may enter into performance fee arrangements with clients. The performance-based fee
option is an advisory fee based on a percent of capital gains or appreciation of ACM Fund or
separate account assets. The performance fee is calculated at a rate of 20% on the amount of
capital appreciation of the ACM Fund within a year’s time.
The receipt of performance-based fees for ACM Fund creates conflicts of interest. Performance-
based fees paid to investment advisers may be significantly higher than the asset-based fees paid
on traditional accounts, thus creating an incentive to favor these accounts. In order to reduce
potential conflicts of interest, ACM does not show preferential treatment to accounts under a
performance-based fee arrangement. All accounts are managed within their respective strategies,
given account restrictions and/or constraints. We perform periodic reviews of the performance
fee accounts to assure consistency with separate fee accounts.
Performance fees will be calculated annually in arrears as a percentage of the per-annum capital
appreciation of an ACM Fund or separate account’s net asset value and charged to certain ACM
Funds and certain limited partners as per the terms and conditions set forth in any ACM Fund’s
documents and/or applicable side letters.
Account Minimums and Types of Clients — Form ADV Part 2A (3/28/2013)
[Brochure]
Types of Clients
ACM requires investors to contribute at least $500,000 as a minimum initial investment in an
ACM Fund. ACM may from time to time and on a case-by-case basis waive this minimum
investment requirement. Investors must be “accredited investors,” as such term is defined in
Regulation D Rule 501 promulgated by the SEC under the Securities Act of 1933, as amended,
and must agree to be bound by the terms and conditions of ACM’s subscription and limited
partnership agreements, as applicable, to each ACM Fund in which the investor invests. In
addition to the foregoing, certain investors must satisfy other qualification requirements,
including but not limited to, “qualified client” and “qualified purchaser” status for a number of
ACM Funds, as such terms are defined in the subscription agreement of said ACM Funds.
Methods of Analysis, Investment Strategies and Risk of Loss
Each of the ACM Funds will be invested in private investment limited partnerships and other
business entities commonly known as hedge funds (each, an “Investment Vehicle”), which in
turn are invested in various public and private debt and equity securities, including derivative
securities, private equity holdings and real estate.
Each Investment Vehicle will provide regular performance reporting and other information
necessary to perform an analysis of performance, which will include qualitative and quantitative
information concerning their respective investment strategies and objectives, as applicable.
Underlying managers of each Investment Vehicle will be subject to ongoing due diligence on
qualitative and quantitative criteria, including but not limited to, background and reference
checks; responses to detailed proprietary due diligence questionnaires, and periodic on-site
meetings.
Investments in any ACM Fund involve risk of loss that investors should be prepared to bear.
ACM intends to deliver audited financial statements of each ACM Fund prepared in accordance
with generally accepted accounting principles (“GAAP”) to investors in the ACM Funds within
180 days of the end of each ACM Fund's fiscal year. ACM will use its best efforts to distribute
audited financial statements of all the ACM Funds to investors on or prior to June 30 each year.