Item 5 – Fees and Compensation
Compensation provided to FAM is negotiable and varies, but typically consists of the following
components. First, FAM charges an annual fee of up to 1% of assets under management
(except for cash), which amount is payable in arrears in quarterly installments at the end of
each calendar quarter based on the net market value of the client’s account on the date the fee
accrues and becomes payable. Second, FAM may receive from each individually managed
account a performance fee equal to 20% of net profits of the account that are greater than a
cumulative annual return (including both realized and unrealized gains and losses) on equities
and special situations, which is negotiated and approved by the client. Performance fees and
performance allocations are assessed in arrears on a quarterly or annual basis and are only
applied to profits that exceed the cumulative losses previously incurred by or allocated to the
respective clients.
Advisory fees, performance fees, and performance allocations may be deducted from the
account where assets are held. FAM requests client authorize the direct withdrawal of fees.
FAM follows the following procedures:
1. Client has given written authorization to deduct advisory fees from the account held with
a qualified custodian.
Fortuna Asset Management, LLC
ADV Part 2, Brochure
Update March 31,2026
2. Each time a fee is directly deducted from a client account, FAM concurrently sends the
qualified custodian an invoice or statement of the amount of fee to be deducted from the
client’s account and sends client an invoice or statement itemizing the fee, including the
formula used to calculate the fee, the value of the assets under management on which the
fee is based and the time period covered by the fee.
FAM currently charges $400 per hour plus 15% overhead charge for the following consulting
services not subject to FAM Advisory fees: investment advice and due diligence regarding
other investment opportunities including joint ventures or real estate propositions, purchase
of trust deeds or other income producing assets not available to a brokerage house, advice for
overall deployment of assets, determining goals and developing investment screens. FAM also
charges hourly fees for non-advisory services performed for estate administration and other
client special projects. These fees are typically not deducted from an account and are billed
directly to the client.
Client may incur fees due to brokerage houses, custodians, banks and other entities that are
typical for the transactions performed by FAM on their behalf. Examples include brokerage
transaction fees, wire fees, and brokerage account fees. Lower fees for comparable services
may be available from other sources.
FAM does not receive commissions on the sale of products to clients. In the event, FAM is
offered a consulting fee or commission equivalent on products purchased by its clients,
FAM’s policy is that it may accept the offered fee or commission, and if it does so, then FAM
and/or the qualified custodian, as applicable, will issue a refund for the corresponding
amount to the client.
Please see Item 12 for more detail.
Fortuna Asset Management, LLC
ADV Part 2, Brochure
Update March 31,2026