Fees and Compensation — Form ADV Part 2A (2/22/2017)
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Item 5: Fees and Compensation
Forum charges each of its hedge fund clients a monthly management fee based on the amount of
assets that Forum manages. The management fee is calculated and due monthly in arrears and paid from
client assets. Forum charges all but one of its hedge fund clients a quarterly performance based fee,
which is payable in arrears, paid from client assets and is subject to a loss carryforward. One of Forum’s
hedge fund clients does not pay a performance based fee directly to Forum. Rather, one of Forum’s
affiliates, Forum Investment Partners, LLC, the General Partner of this hedge fund client, receives a
performance based incentive allocation subject to a loss carryforward.
Forum’s investment adviser client does not pay a management fee but pays a performance based
fee, subject to a loss carryforward. Forum bills this client directly for fees incurred (and does not have the
authority to deduct them from client assets) at the end of the performance period.
Forum’s clients indirectly incur brokerage fees, other transaction costs, custodial fees and
administration fees in connection with the assets that Forum manages for them. See also “Item 12,
Account Minimums and Types of Clients — Form ADV Part 2A (2/22/2017)
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Item 7: Types of Clients
Forum currently provides investment advice to clients that are either unregistered investment
companies (commonly known as hedge funds).