Item 5 – Fees and Compensation
Portfolio Management Fees
For portfolio management services, Cavan Capital Management LLC charges a 1% or 1.75% annual
management fee. Our fee for portfolio/asset management services is set forth in the following fee
schedule:
Annualized Fee
Portfolio without options strategy 1.0%
Portfolio with options strategy 1.75%
Portfolio management fees may be negotiable depending on factors such as the amount of assets under
management, range of investments, and complexity of the client’s financial circumstances, among
others. The agreed upon fee to be paid by the client will be clearly stated in the agreement signed by
the client and the firm. Management fees are payable on a on a biannual basis. Any unearned fees will
be returned to clients. If the agreement is executed at any time other than the first day of a calendar
month, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the month for which you are a client.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities provided that:
• The client provides written authorization permitting the fees to be paid directly from
the client’s account held by the custodian. Cavan Capital Management LLC does not
have access to client funds for payment of fees without client consent in writing.
• Cavan Capital Management LLC sends the client an invoice showing the amount of the
fee, the time period covered by the fee, the value of the client’s assets on which the
fee is based, and the specific manner in which the fee was calculated.
• Cavan Capital Management LLC discloses to the client that it is the client’s responsibility
to verify the accuracy of the fee calculation and that the custodian will not determine
whether the fee is properly calculated.
• Cavan Capital Management LLC will send an invoice to the custodian indicating the
amount of the fee to be paid by the custodian.
• The custodian agrees to send the client a statement, at least quarterly, indicating all
amounts dispersed from the account, including the amount of the advisory fee paid
directly to Cavan Capital Management LLC. Please review each statement for accuracy.
Cavan Capital Management LLC will also receive a copy of your account statements
from the custodian.
Fees are usually deducted from a single designated client asset account to facilitate billing. The client
must consent in advance to direct debiting of any such account. In limited circumstances, at the sole
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Cavan Capital LLC Form ADV
Part 2A
discretion of Cavan Capital Management LLC, we may agree to invoice you directly for our advisory fee
or we may negotiate other fee payment arrangements.
Our annual fee is exclusive of, and in addition to brokerage commissions, transaction fees, and other
related costs and expenses which will be incurred by the client. However, we will not receive any
portion of the commissions, fees, and costs. Please see Item 12 – Brokerage Practices for further
information on brokerage and transaction costs.
Either party may terminate the agreement upon 30 days’ prior written notice to the other party. Fees
will be pro-rated for any partial month. Any prepaid, unearned fees (if any) will be promptly refunded
to the client.
Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund’s prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through whom your account transactions are executed. We do not share
in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or custodian.
To fully understand the total cost you will incur, you should review all the fees charged by mutual funds,
exchange traded funds, our firm, and others. For information on our brokerage practices, please refer
to the “Brokerage Practices” section of this Disclosure Brochure.