Item 5 – Fees and Compensation
A. Fees
FEE SCHEDULE. For the discretionary and limited discretionary portfolio management services, generally,
the Firm charges an annualized fee in accordance with the following fee schedule:
Assets Under Management Annualized Fee
Up to $250,000 2.00%
$250,000 up to $1million 1.75%
$1 million up to $2 million 1.50%
$2 million up to $5 million 1.25%
$5 million up to $10 million 1.00%
$10 million up to $25 million 0.875%
$25 million and over 0.75%
For non-discretionary advisory services, generally, the Firm charges an annualized fee in
accordance with the following fee schedule:
Assets Under Management Annualized Fee
Up to $250,000 1.75%
$250,000 up to $1million 1.50%
$1 million up to $2 million 1.25%
$2 million up to $5 million 1.00%
$5 million up to $10 million 0.875%
$10 million up to $25 million 0.75%
$25 million and over 0.625%
Fees are based on the assets under the management of the Firm for the particular account. The above fees
are annualized. Fees will be charged quarterly and in arrears. The quarterly fee is based upon the market value
of all assets held within the client's account on the last business day of the calendar quarter. For the first
calendar quarter, fees will be adjusted pro rata based on the number of calendar days for which the advisory
agreement was effective. Any contributions and/or withdrawals made during a calendar quarter may result in
an adjustment to the advisory fee.
Lower advisory fees may be negotiated on an individual account basis. As a result, clients with similar assets
may have differing fee schedules and pay different fees. The advisory services commence on the date on
which the advisory agreement is signed by us and the advisory account is funded.
At the specific request of a client, and on an exception basis only, discretionary management services
previously described may be offered for a performance fee. This means that our fees would be based upon a
share of capital gains or capital appreciation of a client’s assets. Any performance fee arrangements will
comply with Section 205-3 of the Investment Advisers Act of 1940. To qualify for a performance-based fee,
the client must either have at least $1 million in assets under management with us or provide us with
documentation evidencing that the client has a net worth of at least $2 million or is a “qualified purchaser”
under Section 2(a)(51)(A) of the Investment Company Act of 1940. The performance fee charged will be
negotiated with the client and will depend upon the total assets under our management. The performance fee
may be coupled with an asset-based fee. The fee schedule will be disclosed in the client agreement before
any services are provided. The fee is payable quarterly and in arrears.
HOW FEES ARE COLLECTED. For the discretionary, limited discretionary and non-discretionary portfolio
management services, the client's account will be debited for the above-mentioned fees. We collect the fees
from the amount of any contribution or transfer, from available cash in the client's account, or by liquidating
the client's assets held in the client's account in an amount equal to the fees that are due. Alternatively, we
may invoice the client directly for the fees due.
FEE SCHEDULE MODIFICATIONS. We may adjust the fee schedule upon thirty (30) days' prior written
notice to the client.
FEE TO HEDGE FUNDS. The fee for providing investment advice to a hedge fund or to the investment
manager of a fund will be negotiated on a case-by-case basis. Generally, the fee will be calculated as a
percentage of the assets under management. Generally, the fee will be an annualized 0.2 to 0.4 percent of the
fund’s managed assets. Additionally, or as an alternative, the Firm may charge performance-based fees. See
Item 6 for additional information.
FEE FOR BUSINESS CONSULTING SERVICES. We provide business consulting services for a fixed or
hourly fee based on the complexity of the transaction or financial matter and the scope of work. Hourly fees
may be up to $1,000/hour. Lower fees may be negotiated with the client.
LOWER FEE DISCLOSURE. Lower fees for comparable management or other services may be available
from other sources.
B. Termination of Service
In connection with the discretionary portfolio management services, upon written notice to the Firm, within
five (5) business days of entering into an agreement with the Firm, the client will have the right of termination
without penalty or payment of fees. The Firm will refund any payment that has been made. Thereafter, either
the Firm or the client may terminate the agreement upon thirty (30) days' written notice to the other party.
The client may be charged a pro rata fee in the event the client's service is terminated on a day other than the
last business day of the calendar quarter. In that event, the pro rata fee will be based on the number of days
for which the advisory agreement was effective and will be due and payable upon termination of the service.
The termination provision in connection with the advisory services to a hedge fund will generally permit the
Firm or the fund or investment manager, as the case may be, to terminate the agreement upon 30 days’ prior
written notice to the other party.
The business consulting services agreement and real estate advisory services agreement are limited in
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