Item 5 – Fees and Compensation
Private Funds – Management and Incentive Fee
For the Private Funds business, Cypress Point is compensated in one of two ways:
• Fee participation in which Cypress Point participates in the Underlying Manager’s fees and does
not charge a fee to Fund investors, or;
• Fee overlay in which Cypress Point charges Fund-level management and/or incentive fees in
addition to fees charged by the Underlying Managers.
The details of any such arrangement with respect to a particular Investment Vehicle will be disclosed in
the relevant Investment Vehicle Addendum. Alternatively, or, in addition to the fees charged by the
Underlying Manager, Cypress Point may charge a management and/or administrative fee.
Asymmetric Return Fund (“ARF”): With respect to ARF, Cypress Point, GI and the Underlying Manager
have entered into an agreement pursuant to which GI receives up to 20% of the management fee and
carried interest (“Manager Fee Participation”) otherwise payable to the Underlying Manager in respect
of ARF’s investment in the Underlying Fund. Under the Company’s agreement with GI, 90-100% of the
Manager Fee Participation is paid by GI to certain registered representatives that are also principals of
Cypress Point. The Underlying Manager generally charges a 2% annual management fee (payable
monthly in advance) and 20% of gross profits earned.
Subscription interests in ARF are sold and distributed by GI, which is a broker-dealer regulated by the
Financial Industry Regulatory Authority (“FINRA”). Payments made to certain principals of Cypress Point
are subject to the Company’s association agreement with GI under which such principals are registered
representatives of GI. Refer to Item 10 below for more information regarding the Company’s
relationship with GI.
Beginning in March 2014, Cypress Point began offering a Class B interest in ARF. Such Class B interests
are subject to an administration fee of 25bps in addition to the management and incentive fees of the
Underlying Manager as described above. Cypress Point receives 100% of management fees earned by
the Underlying Manager for the first 12 months of a Class B investor’s investment period.
Hedged Strategies Fund (“HSF”) and Hedged Strategies Fund II (“HSF II”): With respect to HSF and HSF II,
Cypress Point receives a monthly management fee, as defined in each respective Investment Vehicle
Addendum, which may differ for each class of interests. With respect to any investor holding Founders’
Class interests, the management fee is calculated at the annual rate of 0.75% of each investor’s capital
account. With respect to any investor holding Class A interests, the management fee is calculated at the
annual rate of 1.0% of each investor’s capital account. The management fee will be paid monthly in
advance, based on the value of each investor's capital account, as of the first day of the month.
In addition, Cypress Point is entitled to receive an annual allocation of the net income allocated to each
investor if the net income allocated to such Investor exceeds the trailing twelve month change in the
Consumer Price Index, All Urban Consumers, a U.S. inflation index calculated by the U.S. Department of
Labor Bureau of Labor Statistics, for the same period. The incentive allocation will be calculated
differently for investors holding different classes of interests. With respect to any investor holding
Founders’ Class interests, Cypress Point will receive an incentive allocation equal to 7.5%. With respect
to any investor holding Class A interests, Cypress Point will receive an incentive allocation equal to 10%.
Cypress Point Capital Management, LLC Brochure (Form ADV Part 2A)
Tactical Strategies Fund (“TSF”): With respect to TSF, Cypress Point receives a 25bps administration fee.
Separately, the Underlying Manager generally charges a 65bps annual management fee (payable
monthly in advance) and 10% of gross profits earned. The administration fee will be paid monthly in
advance, based on the value of each investor's capital account, as of the first day of the month.
Special Situations Fund (“SSF”): With respect to SSF, Cypress Point receives no monthly management
fee. However, Cypress Point is entitled to receive an annual allocation of the net income allocated to
each investor equal to 15%. From time to time, SSF investors are permitted to invest in “excess fund”
trades at their own discretion. Cypress Point is entitled to receive an annual allocation of the net
income allocated to each investor related to these “excess fund” trades equal to 25%.
Alternative Yield Fund (“AYF”): With respect to AYF, Cypress Point receives no management fee or
incentive fees. However, Cypress Point receives an annual administration fee equal to 25bps. The
administration fee will be paid monthly in advance, based on the value of each investor's capital
account, as of the first day of the month.
Investment Vehicle Manager Fee Share
GI or an affiliate of Cypress Point may receive compensation from an Underlying Manager in respect of
an IP’s Investment Vehicle’s investment with such Underlying Fund, which may be paid out of such
Underlying Manager’s management (or similar) fees and/or performance compensation (each, a
“Manager Fee Share”). The Manager Fee Share may be shared with principals of Cypress Point who are
registered representatives of GI. The details of any such arrangement with respect to a particular
Investment Vehicle will be disclosed in the relevant Investment Vehicle Addendum. Alternatively, or, in
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