Item 5: Fees and Compensation
Long Only Strategies
As compensation for our advisory services, each long-only account client pays an investment management
fee based on asset under management. Our advisory fees range from 0.60% to 1.0% per annum depending
on account size. Our advisory fees are negotiable and are determined at our discretion. The fees are
calculated and collected quarterly in arrears based on a 3-month ending balance average.
Long/Short Strategies
As compensation for our advisory services, we receive from qualified clients an investment management
fee based on assets under management and a performance-based incentive allocation. Our investment
management fee is 2% per annum. They are based on the value of the assets under management and are
calculated by the fund’s third-party fund administrator.
Our performance-based incentive allocation is 20% of the Net New Profits, as defined below, as
determined by a third-party fund administrator on an annual basis for the prior year. “Net New Profits”
means the net increase in the assets under management, subject to a loss carry-forward also referred to
as a “high water mark”.
Sub-Advisory Fees
Independent RIAs will recommend our Firm in a sub-advisor capacity and we will bill an investment
management fee for the services provided to the Adviser Client. These fees are disclosed in each
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Investment Management Agreement. Our Firm will instruct the Custodian to debit fees payable in
accordance with the investment management fee schedule included within Investment Management
Agreement executed by Adviser Client. Fees are billed in arrears and will be calculated as a percentage of
the closing balance of managed assets on the last business day of the previous month.
Model Portfolio Subscription Fees
Fees for our model portfolio subscription services are billed based on the assets under advisement (valued
as of the end of each quarter or month end, as agreed to in the Subscription Contract). Fees are negotiable
and determined at our discretion. Our annual fees for services do not exceed 0.50%.
General Information on Advisory Fees and Services
If a client authorizes us to deduct fees directly from an account held by a qualified custodian, we will obtain
written authorization from the client to deduct such fees. Currently a Fund Administrator will calculate
the fee and send us documentation, including the formula used to calculate the fee, the amount of assets
under management upon which the fee is based, and the time period covered by the fee. Bullseye will
then review the fee calculation and deduct the fees, if in agreement. If the client does not authorize us to
deduct the fee from the client’s account, we will either send the client an invoice or the client will send us
a calculation of fees due, which we then review and approve. The Investment Management Fee will be
due upon receipt.
We may make changes to the fee schedule by giving clients thirty (30) days written notice of such changes.
If the client does not terminate the investment services, the new fees or changes will become effective at
the expiration of the thirty (30) days. The Investment Management Agreement may be terminated by
either us or the client by submitting written notice to the appropriate parties. If notice of termination is
received within five (5) business days of the signing of the Investment Management Agreement, services
will be terminated without penalty (i.e. no fees are due). After the initial five (5) business days, fees will
be due, based on the number of days of services provided prior to receipt of such notice. Termination of
services will not affect the liabilities or obligations of the parties arising out of transactions initiated prior
to termination.
In addition to our investment management fees, the clients bear trading costs, custodial fees, and other
expenses. These may include (i) all costs and expenses of transferring the assets to the account; (ii) all
taxes and governmental fees and charges incurred by the account (including all withholding taxes); (iii) all
brokerage commissions and other trading costs and fees, underwriting discounts, sales loads, spreads and
other similar charges; and (iv) all charges of US depositories and of any custodian and/or other service
provides. To the extent that client accounts are invested in mutual funds or ETFs, the client will incur a
separate layer of management, trading, and administrative expenses. We do not share in any portion of
the fees or transaction charges imposed by the custodian or mutual funds. For additional information
see Item 12: “Brokerage Practices”.
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