Item 5 – Fees and Compensation
In addition to the information provide in Item 4 – Advisory Business, this section provides additional details
regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements.
Elgethun Capital Management manages investment advisory accounts on a discretionary or non-
discretionary directive for individual and institutional clients. ECM buys and sells common stocks, preferred
stocks, corporate bonds, municipal bonds, government and agency bonds, and mutual funds for their
clientele. Elgethun Capital Management provides investment advice through consultation services for an
hourly rate. [Elgethun Capital Management does not consider any of its services to be financial planning;
accordingly, ECM does not bill separately for financial planning services and does not represent itself as a
financial planner.]
Elgethun Capital Management offers investment advisory services and charges for its services as follows:
1. A fee as a percentage of assets under ECM's management
2. A fee on an hourly basis for consultation/advice
3. A fee based on the size of the account and the work involved for the client
Elgethun Capital Management provides continuous investment management services that include selecting
the investment strategy, implementation of the strategy such as buying and selling stocks, bonds, and
mutual funds on a discretionary or non-discretionary basis for the client.
Asset Management Fees
Basic fee schedule:
1. 0.5% to 1.00% of the market value of the account on an annual basis
2. Fees are negotiable based on the size of the account and the investment advisory work
involved by ECM.
3. Minimum annual fee is $15,000.00.
4. Fees are due quarterly. Fees are billed directly to the account through the custodian.
5. Fees are payable quarterly in advance.
6. Clients may terminate the investment advisory agreement with a 30-day written notice at
their discretion; fees will be prorated to the date of final termination.
Performance-Based Fees for Pooled Investment Vehicles
ECM or its affiliates may charge performance-based fees through pooled investment vehicles. Elbark
Capital, LLC is the General Partner to a pooled investment vehicle, and is an affiliate of ECM, under
common control of John A. Barker. ECM is the investment adviser to the ECM Yield Fund II which is a
pooled investment vehicle. Each entity will receive performance fee compensation for investment
management of the relevant pooled investment fund.
• Elbark Capital’s fee is equal to the following formula: no management fee; 25% of any return above
6%. This fee will be charged in arrears on an annual basis, based on the NAV at 12/31. The fund
must exceed its previous high-water-mark to be eligible for a performance-based fee allocation.
• ECM Yield Fund II fee is equal to the following: no management fee; 15% profit split distribution.
Titan Yield, LLC is an affiliated entity controlled by John Barker that receives the profit split from
ECM Yield Fund II.
Elgethun Capital Management Disclosure Brochure
Consultation Fees
The fee for ongoing consulting services is billed upon an hourly basis and is negotiable. The standard hourly
fees for these services are $500.00. All hourly fees will be specified in the Consultation Agreement signed
prior to the start of our engagement. You may terminate the ongoing consulting services within five (5)
business days of entering into written agreement without penalty or fees due. If you terminate the ongoing
consulting services after five (5) business days of entering into the agreement, you will be responsible for
immediate payment of any consulting work performed by Elgethun Capital Management under the
agreement, together with reimbursement of any applicable of travel expenses, prior to our receipt of your
notice to terminate the services. In the event that there is a remaining balance of any fees paid in advance
after the deduction of fees from the final invoice, those remaining proceeds will be refunded to you.
General Disclosure Regarding Fees and Services
Securities are processed through the Charles Schwab platform, or other platforms if a client requests ECM
to use another custodian/broker-dealer; trades are confirmed with the clients of ECM through the delivery of
trade confirmations and clients’ statements provided to the client directly from Schwab Advisor Services
Institutional/Charles Schwab brokerage, or the brokerage firm of record. Brokerage commissions and/or
transaction ticket fees charged by a qualified custodian and/or broker/dealer will be billed directly to the
client. ECM does not receive any commissions or transaction-related fees.
Lower fees for comparable services may be available from other sources.
Clients are advised that the investment recommendations and advice offered by Elgethun Capital
Management does not constitute legal or accounting advice. Therefore, you should coordinate and discuss
the impact of financial advice with your attorney and/or accountant. Clients are advised that it is necessary
to inform promptly with respect to any changes in their financial situation, investment goals and objectives.
Failure to notify Elgethun Capital Management of any such changes could result in investment
recommendations not meeting the needs of the client.
Outside Compensation for the Sale of Securities to Clients
Neither ECM nor its supervised persons accept any compensation for the sale of securities or other
investment products, including asset-based sales charges or services fees from the sale of mutual funds.