Item 5-Fees and Compensation
Pursuant to an investment management agreement entered into between HMAMF and Higher
Moment, HMAMF pays to Higher Moment a fixed management fee payable monthly, in arrears,
equal to 0.125% (1.5% annualized) of the ending monthly net asset value of each limited part-
ner's capital account (the "Management Fee").
Pursuant to an investment management agreement entered into between HMOMF and Higher
Moment, HMOMF pays to Higher Moment a fixed management fee payable monthly, in arrears,
equal to 0.167% (2.0% annualized) of the ending monthly net asset value of each limited part-
ner's capital account (the "Management Fee").
Pursuant to an investment management agreement entered into between HMMSMF and Higher
Moment, HMMSMF pays to Higher Moment a fixed management fee payable monthly, in ar-
rears, equal to 0.11% (1.33% annualized) of the ending monthly net asset value of each lim-
ited partner's capital account (the "Management Fee").
With respect to all Clients, Higher Moment has the right to reduce or waive, from time to
time, all or part of the Management Fee attributed to certain investors in the Clients (each an
“Investor: together “Investors”).
Higher Moment capital does not impose any further fees on its clients beyond the Fixed Man-
agement fees (described in the paragraphs above of this section) and Performance Based Par-
ticipation fees described in section 6 below.
It is worth noting that each Fund bears its own expenses, including, without limitation, in-
vestment-related expenses whether relating to investments that are consummated or uncon-
summated (e.g., brokerage commissions, due diligence costs, expenses of consultants, inter-
est on margin accounts and other indebtedness, borrowing charges on securities sold short,
custodial fees, clearing and settlement charges and interest expense); research-related ex-
penses, including, without limitation, news and quotation equipment and services; legal ex-
penses; professional fees (including, without limitation, expenses of consultants and experts);
the costs of organizing and maintaining any trading vehicles; costs relating to swaps (and simi-
lar agreements); auditing and tax preparation expenses; fees and expenses of the “tax mat-
ters partner” or “partnership representative” (which amounts may arise separately as a Fund-
level expense); accounting expenses; market data costs; costs of third-party administrators;
March 2018 6
costs of any third party engaged to serve as an independent investor representative; fees paid
to directors; costs of printing and mailing reports and notices; organizational and offering ex-
penses; costs of the Investment Manager’s liability insurance and related insurance; manage-
ment fees; indemnification expenses; corporate licensing fees and other professional fees;
bank service fees; taxes (including withholding and transfer taxes) and other similar amounts
(any of which may arise separately as a Fund-level expense); trademarks; regulatory and
compliance expenses relating to the Fund or the Master Funds, including expenses of prepar-
ing regulatory filings of the Funds, or of the Investment Manager as a result of its manage-
ment of the Funds, such as Form PF; other expenses related to the purchase, monitoring,
sale, settlement, custody or transmittal of the Funds’ assets (directly or through trading vehi-
cles); and extraordinary expenses and other similar expenses related to the Funds.
Certain organizational expenses of each of the Funds are being amortized by the respective
fund over a 60 month period from commencement of the respective Fund.
Clients may terminate Higher Moment’s advisory services at any time without penalty, gener-
ally upon one months’ advance written notice. Withdrawals or redemptions by Investors in a
Client can be made on the terms described in the applicable offering documents.
March 2018 7