Item 5 Fees and Compensation
Investment Advisory Services
The Firm bases its fees on a percentage of assets under management and/or a performance fee of
net investment gains according to the following fee schedule. The Firm offers differing fee levels
based on factors such as the asset size of the client relationship with the Firm, investment strategy,
degree of supervision required, the nature of service provided, and the guidelines and restrictions
imposed upon the management of the account. “Qualified Clients” and/or a “Qualified Purchaser”
may choose to enter into an agreement based on a performance fee.
Gator Long/Short Financials Strategy (Private Funds and Separate Accounts)
Minimum separate account size is $5 million.
1% annual management fee and a 20% performance fee of net investment gains. The performance
fee of 20% will apply only to the extent the performance is a) greater than 0% net of all fees, and
b) the performance when calculated exceeds the previous high-water mark. Should the
performance at the end of any given year not exceed “a” and “b” there will be no performance fee
earned by the Firm. The Firm will always be entitled to the 1% annual management fee.
Gator Capital Long/Short Fund
Minimum account size is $5,000
1.00% annual management fee based on average daily net assets of the fund up to $250
million;
Gator Capital Management
0.90% annual management fee based on average daily net assets of the fund in excess of
$250 million but not greater than $500 million;
0.80% annual management fee based on average daily net assets of the fund in excess of
$500 million.
Additional information regarding the Gator Capital Long/Short Fund is available in the fund’s
prospectus and Statement of Additional Information.
Long Short Opportunity Fund – Sub-Advised Mutual Fund
The Adviser, as Sub-Adviser to Long Short Opportunity Fund (“LSOFX”), receives a portion of
the fee paid to its adviser, Long Short Advisors, LLC, which varies based on the total assets of the
fund. LSOFX is obligated to pay Long Short Advisors, LLC, a fee computed and accrued daily
and paid monthly at an annual rate of 1.75% of the average daily net assets of LSOFX. The Adviser
deducts the investment management fee from the Investment Fund accounts by instructing the
client’s custodian.
Gator Advisory Accounts
Minimum account size is $100,000.
0.50% for investments with a value less than $5 million;
0.40% for investments with a value equal to or greater than $5 million
Gator Contributor Accounts
Compensation for Contributor Accounts is typically structured as a performance-based research
fee.
Fees and Minimum Account Size
Fees and minimum account size may be negotiable on a client-by-client basis depending on a
number of factors, including the type and nature of services to be provided, the amount of assets
to be managed, and/or anticipated future additional assets and accounts. The specific annual fee
schedule is identified in the agreement between us. Your fee structure will never change from that
contained in your investment management agreement with us unless agreed to in writing by you
and made a part of your investment management agreement. There will be no retroactive increase
in the minimum account size required for a specific investment.
Calculation and Payment of Management Fees
Our suggested arrangement is to bill investment management fees daily, monthly or quarterly in
arrears.
If a client requests billing in advance, the fee is based on either the initial deposit at the beginning
of the account relationship and prorated for the number of days remaining in the quarter, and for
subsequent billings, the fee will be based on the value of the account on the last day of the prior
Gator Capital Management
quarter. If the account is terminated during a quarter the account will be refunded any unearned
fees based on the number of days remaining in the quarter. Refunds of fees billed in advance and
unearned will generally be processed within 14 days of receiving proper notification of the
termination of the account.
If the account is billed in arrears, we bill fees after the period has ended. The fee will be based on
the average monthly value for the quarter. Payment in full is expected upon invoice presentation.
If an account is terminated prior to the end of a quarter the fee will be prorated based on the number
of days in the quarter that Gator has earned a fee.
Fees may be deducted from a designated client account to facilitate billing. The client must consent
in advance to direct debiting of their investment account through their agreement with Gator or an
executed addendum and through authority provided in the client’s custodial account paperwork.
Other Fees
The fee that you are being charged by us for the investment management of your assets is exclusive
of, and in addition to, brokerage commissions, transaction fees, borrowing charges on securities
sold short, custodial fees, and any other related costs and expenses. We do not receive any portion
of these commissions, fees, other costs and expenses.
In addition, a portion of your assets may be invested in third-party mutual funds or exchange-
traded funds. These funds charge an annual internal management fee as outlined in their
prospectuses which is deducted directly from your account balance by that fund. We do not receive
any of these additional fees; however, these fees do represent an additional fee that you are paying
above that being charged by us. Accordingly, you should review the fees charged by other third-
party managed mutual funds, and our fees to fully understand the total amount of fees to be paid
by you and to thereby evaluate the advisory services provided.
When we determine that any part of your assets that we manage will be invested in a third-party
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