Item 5 - Fees and Compensation
A. Our fees and compensation are described in the advisory contracts we enter into with the
Crawford Lake Accounts.
Generally, the Flagship Feeder Funds pay the Adviser a management fee in an amount
equal to 0.375% (approximately 1.5% on an annualized basis) of the net asset value of each
investor’s capital account payable in advance and the Enhanced Feeder Funds pay the
Adviser a management fee in an amount equal to 0.50% (approximately 2.0% on an
annualized basis) of the net asset value of each investor’s capital account payable in
advance. In the event of a redemption other than at the end of a calendar quarter, the
appropriate portion of the management fee for such quarter will be refunded. Certain of the
Funds’ investors are subject to a lower management fee. Additionally, subject to a high
water mark provision, each of the Flagship Feeder Funds and Enhanced Feeder Funds are
subject to a 20% annual performance-based allocation or fee calculated as defined in each
Fund’s offering documents. Certain of the Fund’s investors are subject to a lower
performance-based allocation or fee. With respect to the UCITS Fund, the terms of
compensation payable to Crawford Lake and its affiliates are set forth in the UCITS Fund’s
prospectus. The prospectus includes a complete discussion of fees and expenses paid by
investors. Crawford Lake is paid an investment management fee on the UCITS Fund’s
assets, monthly in arrears at the annual rate of up to 2.0%, based on the monthly average
net assets of the UCITS Fund. Additionally, subject to a high water mark provision, the
UCITS Fund is subject to a 20% annual performance-based allocation or fee calculated as
defined in the UCITS Fund’s governing documents.
The Adviser’s management fees and compensation with respect to each Separate Vehicle
are negotiated with each such Separate Vehicle and are set forth in their respective
governing agreements.
We or Crawford Lake GP may, in our discretion, waive all or any portion of these fees and
allocations with respect to any investor without notice to, or the consent of, the other
investors.
B. We generally deduct our management fees from the Funds quarterly in advance, except as
described herein. Generally, we or our affiliates receive performance-based fees or
allocations from the Funds on an annual basis in arrears and upon redemptions or
withdrawals by investors in the Funds. Investments in the Funds made as of times other
than the first day of a calendar quarter are generally assessed a pro rata management fee at
the time such investments are made. Management fees and performance-based fees or
allocations with respect to each Separate Vehicle are negotiated with each such Separate
Vehicle and are set forth in their respective governing agreements.
C. The Funds generally bear their own operating and other expenses, including expenses
related to the U.S. and international offering of the Funds’ interests or shares and related
filings and registrations (including expenses related to compliance with applicable U.S.
and international anti-money laundering law requirements, expenses relating to the Funds’
Swiss representative (as applicable), and related expenses of U.S. and non-U.S. legal
CRAWFORD LAKE CAPITAL MANAGEMENT, LLC Form ADV: Part 2A Page 6
counsel), investor reporting costs, administration and audit expenses, any and all fees for
research (including investment conferences and on-line news and quotation services,
Bloomberg service, etc., and related connectivity and maintenance costs) and due
diligence, research materials and research-related travel, due diligence-related travel,
trading systems and software, risk management systems and software, portfolio
management systems, order management systems, interest on margin accounts, legal,
accounting and professional fees (including the costs and expenses of the Funds’
governance committee), consulting fees, insurance costs (including, without limitation,
directors’ and officers’ insurance, fidelity bonds and insurance relating to cybersecurity),
borrowing charges on securities sold short, custodial fees, trustees fees, brokerage
commissions, bank service fees, interest on loans and debit balances, fees and expenses of
the Adviser incurred in connection with preparing and filing reports relating to the Funds’
trading activities (including under investment advisory laws, such as Form PF), any taxes
applicable to the Funds on account of their operations and/or investments, any expenses
incurred in connection with FATCA and AEOI, and any and all expenses related to the
management and operation of the Funds as well as the purchase, sale or transmittal of
assets, as the Adviser determines in its discretion.
Generally, all expenses of the Funds will be borne by the applicable master fund, other than
any expenses that we or Crawford Lake GP determine in our discretion should be allocated
to a particular feeder fund. The expenses that are charged to Separate Vehicles are
determined on a case by case basis. To the extent that any expenses are incurred jointly for
the account of the Funds, any Separate Vehicles, and the Adviser, the Crawford Lake GP,
or their affiliates, the Adviser or the Crawford Lake GP, as applicable, will be allocated a
portion of such expense as the Adviser deems to be reasonable.
We may cause certain Crawford Lake Accounts to invest a portion of their capital in money
market funds or exchange-traded funds or similar products. In addition to the fees and
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