Fees and Compensation
Description
As the general partner of the Fund, Avondale Conquest receives an annual
management fee of 1% of assets under management and a performance
allocation equal to 20% of the net profits of the Fund. Avondale Conquest
complies with Rule 260.234 under the California Corporate Securities Law of
1968. Avondale Conquest believes that its fees are competitive with those
fees charged by other investment advisers for comparable services.
Comparable services, however, may be available from other sources for
lower fees than those charged by Avondale Conquest.
As a Sub-Advisor for Prelude, Avondale Conquest may receive a
performance allocation of up to 55% of the net profits of Prelude.
Fee Billing
The Fund’s annual management fee is payable in quarterly installments at the
beginning of each calendar quarter based on the net market value of the
aggregate of the Limited Partners’ capital accounts. Fees are automatically
deducted from the accounts via a third-party administrator. The performance
allocation is based on the net profits of the Fund (including both realized and
unrealized gains and losses), assessed in arrears at the end of each calendar
year, provided that such amount will only be applied to the portion of profits in
each Limited Partners’ capital accounts which exceeds the cumulative losses
previously allocated to such Limited Partner.
The performance allocation for Prelude is assessed in arrears at the end of
each month.
Avondale Conquest
Other Fees and Expenses
The Fund pays or reimburses Avondale Conquest for all Fund trading costs
and expenses (such as, for example, expenses related to short sales,
brokerage commissions, clearing and settlement charges, option premiums,
markups, custodial fees, and service fees), all interest on Fund borrowings
(on margin or otherwise), all costs and expenses associated with negotiating
and entering into contracts and arrangements in the ordinary course of the
Fund’s business, all Fund selling costs and expenses, all costs of
communicating with existing and prospective Limited Partners, and all
bookkeeping, recordkeeping, legal, accounting, professional, expert and
consulting fees and expenses (including the fees and expenses of counsel for
Avondale Conquest and the costs and expenses of portfolio recordkeeping
and research related software), incurred by or on behalf of the Fund or for its
benefit. Avondale Conquest bears all of its own operating, general,
administrative, and overhead costs and expenses, except that the costs of
certain of these services and expenses may be paid by securities brokerage
firms to which Avondale Conquest directs the Fund’s securities trades.