Fees and Compensation — Form ADV Part 2A (3/29/2016)
[Brochure]
Item 5 – Fees and Compensation
This Brochure is delivered only to qualified purchasers as defined in section 2(a)(51)(A) of
the Investment Company Act of 1940. SEC instructions allow us to omit disclosure of our
fee schedule and certain related information because such information has little utility for
institutional and large, sophisticated clients.
The timing of fee payments is negotiated with each client, and fees are payable in arrears
monthly or quarterly. Performance based fees typically are based upon capital
appreciation, or exceeding specified return benchmarks and may be paid annually.
Generally, our advisory agreements with clients do not provide for specific termination
dates and are terminable upon 30 days’ notice.
The specific manner in which we charge fees is established in each client’s written
agreement with us. We bill our fees quarterly. Management fees for private fund clients
are generally prorated for each capital contribution and withdrawal made during the
applicable calendar quarter. Accounts initiated or terminated during a calendar quarter
are charged a prorated fee. Upon termination of any account, any unearned fees are
promptly refunded, and any earned, unpaid fees become due and payable.
Our clients incur transaction costs. Fixed income securities generally are purchased from
their issuer, a dealer acting as principal or a broker acting as agent on a net basis with no
commission paid by the client but subject to the seller’s pricing including any mark‐up. Our
fixed income sales in the secondary market are executed on a competitive basis; our fixed
income purchases in the secondary market are executed on a competitive basis if multiple
quotes are available. Dealers and brokers are selected primarily based on price
competitiveness. Item 12 further describes the factors that we consider in selecting
dealers and brokers for client transactions.
All of our client assets are maintained with third‐party custodial institutions that are not
affiliated with us. Our clients choose their custodians, except for certain of our private fund
clients the custodians of which have been chosen by us. Custodians negotiate certain
charges and fees for their services, which are exclusive of and in addition to our fees.
Account Minimums and Types of Clients — Form ADV Part 2A (3/29/2016)
[Brochure]
Item 7 – Types of Clients
We provide investment advisory services to corporations and other businesses, state and
municipal government entities, pension and profit‐sharing plans, investment companies
(including mutual funds) and their investment advisers, pooled investment vehicles (other
than investment companies), charitable organizations and insurance companies.
In general, we require $25 million to $100 million of assets to manage a client portfolio.
The minimum amount required depends on the investment strategy to be employed on
behalf of the client.