Fees and Compensation — Form ADV Part 2A (4/4/2012)
[Brochure]
Item 5. Fees and Compensation
For providing advisory services, the Applicant receives a weekly, monthly or quarterly
advisory fee, paid in advance, in the amount of 1% to 2% per year of the average net assets of each
Feeder Fund. No advisory fees are paid to the Applicant by the Master Funds. If the advisory
contract is terminated before the end of the applicable billing period, the unearned portion of the
advisory fee is refunded by the Applicant to the applicable Feeder Fund based on the number of
days left in such billing period. The Applicant also generally receives from the Funds a
performance fee equal to 20-25% of the cumulative performance (including both realized gains
and losses and unrealized appreciation and depreciation before taxes, including foreign
withholding taxes) of the Feeder Funds, and in certain instances subject to a preferred return or
"hurdle rate" (the "Incentive Fee"). The Incentive Fee is usually, though not always, subject to a
"high water mark" feature so that the Incentive Fee is payable only in respect of incremental
positive performance. No performance fees are paid to the Applicant by the Master Funds. Finally,
the Feeder Funds may pay to the Applicant certain indirect expense reimbursement fees in an
amount of up to 0.5% of each Feeder Fund's assets under management. In rare instances, fees that
are paid by a Fund with respect to a particular investor's investment may be negotiable, but
generally the fees paid by the Funds are not negotiable. The fees charged by the Applicant are
deducted directly from Client accounts and Clients are not given the option to be billed for fees
incurred.
Fees owed to the custodians, administrators, legal advisors and auditors of each of the
Applicant's Clients are paid directly by such Clients, not by the Applicant. Similarly, Clients of
the Applicant are responsible for paying brokerage fees on any transactions in which they engage.
Please refer to Item 12. Brokerage Practices for a more extensive discussion of the Applicant's
Account Minimums and Types of Clients — Form ADV Part 2A (4/4/2012)
[Brochure]
Item 7. Types of Clients
The Applicant or one of its affiliates is the general partner and/or investment advisor of
several private investment partnership and funds, which serve as the Feeder Funds in the
Master-Feeder structure managed by the Applicant. The individual partners or investors of the
Feeder Funds are not Clients of the Applicant. The Applicant's other Clients are the Master Funds
it services as an investment advisor, which are also private investment funds. The Applicant does
not provide investment advisory services to individuals.