Fees and Compensation — Form ADV Part 2A (2/3/2026)
[Brochure]
Item 5 - Fees and Compensation
Separately Managed Accounts
Clients pay a management fee at the rate of 1.0% per annum of the net asset value of the account, for
Covey Capital’s investment management and administrative services (the “Management Fee”).
Management fees are payable quarterly in advance and are calculated based on the value of the
account on the last day of the prior quarter. Fees are debited directly from client accounts when
authorized. Clients may contribute cash or securities into a managed account or withdraw managed
assets at any time upon notice. If management begins after the start of a quarter, fees will be prorated
according to the number of calendar days the account was managed for that quarter.
Either Covey Capital or the client may terminate their investment advisory agreement at any time,
subject to the written notice requirements in the agreement. In the event of termination, any paid
but unearned fees will be promptly refunded to the client based on the number of calendar days that
the account was managed, and any fees due to Covey Capital from the client will be invoiced or
deducted from the client’s account prior to termination.
Covey Capital may, at its discretion, make exceptions to the foregoing or negotiate special fee
arrangements where Covey Capital deems it appropriate under the circumstances.
General Fee Information
Fees paid to Covey Capital are exclusive of all custodial and transaction costs paid to the client’s
custodian, brokers or other third-party consultants. Please see Item 12 – Brokerage Practices for
additional information. Fees paid to Covey Capital are also separate and distinct from the fees and
expenses charged by mutual funds, ETFs (exchange-traded funds) or other investment pools to their
shareholders (generally including a management fee and fund expenses, as described in each fund’s
prospectus or offering materials). The client should review all fees charged by funds, brokers, Covey
Capital and others to fully understand the total amount of fees paid by the client for investment and
financial-related services.
Account Minimums and Types of Clients — Form ADV Part 2A (2/3/2026)
[Brochure]
Item 7 - Types of Clients
Covey Capital provides discretionary investment advisory services to high net worth individuals,
family partnerships, foundations, charitable organizations, or other sophisticated investors. With
some exceptions, the minimum portfolio value eligible for such investment advisory services is
$1,000,000. Minimum annual fees may apply. Under certain circumstances and in its sole discretion,
Covey Capital may negotiate such minimums.