Henson-Edgewater Management LLC

Fees and Compensation

                                                                                     Form ADV Part 2A, Item 5

See Item 4, above.

                           Performance-Based Fees and Side-By-Side Management

                                                                                        Form ADV Part 2A, Item 6
None.

Types of Clients

                                                                                        Form ADV Part 2A, Item 7
Individuals, pension plans, profit sharing plans, trusts, estates, charitable organizations, corporations and other
business entities.

We do not have a minimum account size requirement.

                         Methods of Analysis, Investment Strategies and Risk of Loss

                                                                                        Form ADV Part 2A, Item 8
Method of securities analysis will be fundamental analysis. Fundamental analysis involves analyzing
individual companies and their industry groups, such as a company’s financial statements, details regarding the
company’s product line, the experience, and expertise of the company’s management, and the outlook for the
company’s industry. The resulting data is used to measure the true value of the company’s stock compared to
the current market value. The risk of fundamental analysis is that information obtained may be incorrect and the
analysis may not provide an accurate estimate of earnings, which may be the basis for a stock’s value. If
securities prices adjust rapidly to new information, utilizing fundamental analysis may not result in favorable
performance.
Investment strategies will be long term purchases (securities held at least a year), short term purchases
(securities held less than a year) and trading (securities held less than 30 days.)
All investing strategies we offer involve risk and may result in a loss of your original investment which
you should be prepared to bear. Many of these risks apply equally to stocks, bonds, commodities and any
other investment or security. Material risks associated with our investment strategies are listed below.
  • Market Risk: Market risk involves the possibility that an investment’s current market value will fall
      because of a general market decline, reducing the value of the investment regardless of the success of the
      issuer’s operations or its financial condition.
  • Strategy Risk: The Adviser’s investment strategies and/or investment techniques may not work as
      intended.
  • Small and Medium Cap Company Risk: Securities of companies with small and medium market
      capitalizations are often more volatile and less liquid than investments in larger companies. Small and
      medium cap companies may face a greater risk of business failure, which could increase the volatility of
      the client’s portfolio.
  • Turnover Risk: At times, the strategy may have a portfolio turnover rate that is higher than other
      strategies. A high portfolio turnover would result in correspondingly greater brokerage commission
      expenses and may result in the distribution of additional capital gains for tax purposes. These factors may
      negatively affect the account’s performance.
  • Limited markets: Certain securities may be less liquid (harder to sell or buy) and their prices may at
      times be more volatile than at other times. Under certain market conditions we may be unable to sell or
      liquidate investments at prices we consider reasonable or favorable, or find buyers at any price.
  • Concentration Risk: Certain investment strategies focus on particular asset-classes, industries, sectors or
      types of investment. From time to time these strategies may be subject to greater risks of adverse

      developments in such areas of focus than a strategy that is more broadly diversified across a wider variety
      of investments.
 •    Interest Rate Risk: Bond (fixed income) prices generally fall when interest rates rise, and the value may
      fall below par value or the principal investment. The opposite is also generally true: bond prices generally
      rise when interest rates fall. In general, fixed income securities with longer maturities are more sensitive
      to these price changes. Most other investments are also sensitive to the level and direction of interest
      rates.
 •    Legal or Legislative Risk: Legislative changes or Court rulings may impact the value of investments, or
      the securities’ claim on the issuer’s assets and finances.
 •    Inflation: Inflation may erode the buying-power of your investment portfolio, even if the dollar value of
      your investments remains the same.
Risks Associated with Securities
Apart from the general risks outlined above which apply to all types of investments, specific securities may
have other risks.
 • Commercial Paper is, in most cases, an unsecured promissory note that is issued with a maturity of 270
     days or less. Being unsecured the risk to the investor is that the issuer may default.
 • Common stocks may go up and down in price quite dramatically, and in the event of an issuer’s
     bankruptcy or restructuring could lose all value. A slower-growth or recessionary economic environment
     could have an adverse effect on the price of all stocks.
 • Corporate Bonds are debt securities to borrow money. Generally, issuers pay investors periodic interest
     and repay the amount borrowed either periodically during the life of the security and/or at maturity.
     Alternatively, investors can purchase other debt securities, such as zero coupon bonds, which do not pay
     current interest, but rather are priced at a discount from their face values and their values accrete over
     time to face value at maturity. The market prices of debt securities fluctuate depending on such factors as
     interest rates, credit quality, and maturity. In general, market prices of debt securities decline when
     interest rates rise and increase when interest rates fall. The longer the time to a bond’s maturity, the
     greater its interest rate risk.
 • Bank Obligations including bonds and certificates of deposit may be vulnerable to setbacks or panics in
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