Item 5. Fees and Compensation
A. Advisory Fees and Compensation
Asset-Based Compensation
The Adviser charges each client account an investment management fee ranging from 1% to 1.5% per
annum based on the value of the client account’s assets under management. Asset-based fees are
generally charged quarterly in advance based on the value of the relevant assets as of the first day of the
quarter, or charged quarterly in arrears based on the value of the relevant assets as of the last day of
each month. If the Adviser does not manage a client account for a full quarter, the asset-based fee
charged to such client account will be pro-rated for such period, and prepaid unearned fees, if any, will be
promptly refunded.
Investment management fees for the Fund are charged each quarter in advance based on the total
market value of the assets in the client account (including net unrealized appreciation or depreciation of
investments and cash, cash equivalents and accrued interest) on the first day of the quarter. Investment
management fees for the SPC and the UCIT are generally charged each quarter in arrears based on the
total market value of the assets in the client account (including net unrealized appreciation or depreciation
of investments and cash, cash equivalents and accrued interest) on the last day of each calendar month.
If a new client account is established during a quarter, an underlying investor makes an addition to its
account in the Fund during a quarter, or the SPC or the UCIT sponsor makes a contribution to its account
during the quarter, the investment management fee will be charged as of the effective date of the
investment management agreement or the date of the additional contribution by the underlying investor or
the SPC or the UCIT sponsor, based on the value of the assets as of the applicable date and will be
prorated for the number of days remaining in the quarter.
These fees are not negotiable.
Performance-Based Compensation
The Adviser will receive, on an annual basis, performance-based compensation, which is based on a
share of capital gains on, or capital appreciation of, the assets of a client (such as a client that is a hedge
fund, other pooled investment vehicle, the SPC, or the UCIT). This compensation may be paid to the
Adviser or to a related person of the Adviser and ranges from 12.5% to 20%. Under certain
circumstances, receipt of performance-based compensation may be subject to a hurdle rate ranging from
the sum of 3M USD Libor per annum and 1% per annum to the sum of 3M Euribor per annum and 1% per
annum
These fees are not negotiable.
B. Payment of Fees
For a client that is a hedge fund or other pooled investment vehicle, the Adviser deducts the investment
management fee from client accounts. For a client that is a hedge fund or pooled investment vehicle,
performance-based compensation is paid as a reallocation of net profits. For the SPC and the UCIT, the
investment management fee is paid by the SPC and the UCIT, respectively. Performance-based fee paid
by the SPC and the UCIT is paid as a fee.
C. Other Fees and Expenses
In addition to paying investment management fees and, if applicable, performance-based compensation,
client accounts will also be subject to other investment expenses such as legal, compliance, audit and
accounting expenses (including fees and expenses associated with the applicable client’s representation,
paying agency and other distribution items in Switzerland); organizational expenses; administrator fees
and expenses; shareholder proxy voting services; investment expenses such as commissions, research
fees and expenses; interest on margin accounts and other indebtedness; borrowing charges on securities
sold short; custodial fees; bank service fees; certain insurance costs (including D&O and errors & omissions
insurance costs, if any); and any other expenses reasonably related to the purchase, sale or transmittal of
assets. For client assets that are invested in a master-feeder structure, feeder funds bear a pro rata share
of the expenses associated with the related master fund. In addition, clients will incur brokerage and
other transaction costs. Please refer to Item 12 of this Firm Brochure for a discussion of the Adviser’s