Item 5. Fees and Compensation
Asset-Based Compensation
The asset-based compensation applicable to each client account varies and is described in more detail in
the Funds’ offering memoranda or client’s investment management agreement. The Adviser is paid an
asset-based investment management fee generally charged at a rate of 2.0% per annum of the net assets
of the respective Fund. The management fees for the Funds are charged and paid quarterly in advance,
based on the value of the assets as of the first business day of each quarter. The management fee with
respect to a Fund is calculated by a Fund's administrator and deducted by the Fund's administrator pursuant
to instructions from the Adviser.
If an investor invests in a Fund or a client invests during a quarter or makes an additional subscription
during a quarter, the management fee will be charged as of the effective date of the subscription or the date
of the additional contribution based on the value of the assets as of the applicable date and will be prorated
for the number of months remaining in the quarter.
The management fee may be waived or reduced for an investor in a Fund that is a member, employee or
affiliate of the Adviser or Anandar GP LLC (the “General Partner”), relatives of such persons, and for certain
large or strategic investors.
Performance-Based Compensation
The performance-based compensation applicable to each client account varies and is described in more
detail in the Funds’ offering memoranda. The Adviser (or an affiliate of the Adviser) may be paid annual
performance-based compensation, which is compensation based on a share of net capital appreciation of
the assets of a client. This performance-based compensation will generally be calculated at a rate of 20%
and is subject to a loss carryforward.
The performance based compensation may be waived or modified for an investor in a Fund that is a
member, employee or affiliate of the Adviser, the General Partner, relatives of such persons, and for certain
large or strategic investors.
The performance-based compensation with respect to a Fund is calculated by a Fund’s administrator and
deducted by the Fund’s administrator pursuant to instructions from the Adviser. Performance-based
compensation is paid as a reallocation of net profits.
In addition to paying the management fee and performance-based compensation, client accounts are also
subject to other expenses, such as legal, compliance (including expenses relating to compliance or regulatory
filings, including Form PF, made with respect to a Fund's assets), administrative, audit and accounting
expenses (including third-party accounting services and accounting software); shareholder proxy voting
services; organizational expenses; investment expenses such as commissions, research fees and expenses
(including research-related travel, Bloomberg and similar subscriptions and data services); portfolio valuation
expenses (including data feeds and third-party valuation agents); trading-related technology software costs
deemed by the Adviser to benefit a Fund such as portfolio, order and risk management systems; interest on
margin accounts and other indebtedness; fees and expenses related to sourcing, evaluating, consummating,
monitoring and enforcing specific investments; borrowing charges on securities sold short; custodial fees;
bank service fees; Fund-related insurance costs (including D&O and E&O insurance for the Adviser and
outside directors of a Fund); directors' fees and expenses; and any other expenses related to the purchase,
sale or transmittal of Fund assets.
Client assets have been invested in exchange-traded funds (ETFs) or other registered investment
companies. In these cases, the client will bear its pro rata share of the investment management fee and
other fees of such fund, which are in addition to the management fee paid to the Adviser. The Adviser
manages a master-feeder structure and accordingly, the feeder funds in such structure each bear their pro
rata share of the expenses of the master fund. In addition, clients will incur brokerage and other transaction
costs. Please refer to Item 12 of this Brochure for a discussion of the Adviser’s brokerage practices.