Item 5: Fees & Compensation
A. Fee Schedule
Asset-based Compensation
Hayden Capital offers discretionary direct investment management services to advisory clients.
To comply with California Code of Regulations Section 260.238(j), we disclose that lower fees for
comparable services may be available from other sources.
Hayden Capital charges an annual investment advisory fee. Clients may choose one of the two fee
options in the following table, dependent on the dollar amount of assets placed under management
with Hayden.
Total Assets Under Management (AUM) Annualized AUM Fee
Option A
$250,000 – And Up 1.50%
Option B
0.50%
$1,000,000 – And Up
(With Performance Allocation)
Clients with $250,000 and up placed under management with Hayden Capital may elect Option A.
Qualified Clients (See Item 7 below for details) with $1.4 million and up placed under management
or a net worth of $2.7 million, excluding the value of their primary residence, with Hayden Capital,
may elect Option B. Such clients will be charged a 0.50% annualized management fee plus a
“performance allocation”. Clients who elect Option B, the performance fee option, for their
accounts will pay higher fees and therefore realize lower net returns during years of strong
investment performance. Refer to Item 6 below: Performance- Based Fees and Side-by-Side Management
for additional details.
Fund investors may select Option B if they invest at least $250,000. Additionally, the Fund has a 36-
month lock up period and withdrawals prior to the end of the lock-up period are subject to an early
withdrawal penalty of up to 5%. The early withdrawal penalty may be reduced or waived at Hayden
Capital’s discretion.
These fees are negotiable, at the sole discretion of Hayden Capital. The client specific fee will be
memorialized in an Investment Advisory Agreement executed by the client. Clients may terminate
their account within five (5) business days of signing the Investment Advisory Agreement with no
obligation. Thereafter, clients may terminate advisory services with thirty (30) days written notice.
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Hayden Capital considers cash to be a distinct asset class, and the value of such assets are included
in the advisory fee calculation. When yields on cash/money market funds are low enough, the
amount of income those investments generate will not exceed the dollar amount of the advisory fee
that client accounts pay proportionately with respect to those assets. Consequently, clients will
indirectly experience a negative effective return on any cash position during these periods of low
interest rates.
B. Payment of Fees
Management Fee
Asset-based investment advisory fees are paid in arrears. They are generally withdrawn directly from
the client’s account each month with the client’s written authorization. Subject to negotiation and
Hayden’s sole discretion, clients may also elect to pay advisory fees separately, without being
withdrawn directly from the client’s accounts. Hayden accepts checks, wire transfers and ACH
transfers for payment.
Regardless which fee option is chosen (i.e., Option A or Option B) the AUM fee percentage is
generally used to compute fees daily based on NAV. The daily amounts are generally aggregated
monthly and assessed at the end of the month. If clients elect to pay advisory fees separately (i.e.,
not being withdrawn directly from the client’s accounts), the computation for fees will be stipulated
according to a separate Fee Invoice Agreement, mutually agreed upon by Hayden and the client.
Again, clients choosing Option B will also be subject to a Performance Allocation fee. Refer to Item