Jacobs Levy Equity Management Inc

Item 5. Fees and Compensation

ASSET-BASED COMPENSATION
The Adviser charges each client an investment management fee based on the value of the client’s assets
under management or advisement. Fixed fees based on a percentage of net assets are generally charged
quarterly, in arrears.
Fixed fees are prorated for any partial quarters. If a new client account is established during a quarter or a
client makes an addition to its account during a quarter, the investment management fee with respect to
the new account or additional assets, as applicable, will generally be prorated for the number of days
remaining in the quarter. If a client’s investment management agreement is terminated or a withdrawal is
made from a client account during a quarter, the fee payable to the Adviser with respect to the terminated
account or withdrawn assets, as applicable, will generally be calculated based on the value of the assets
on the termination date or withdrawal date and prorated for the number of days during the quarter in which
the investment management arrangement was in effect or such amount was in the account (as applicable).
For certain investment vehicles, the fixed fee may accrue daily and be paid monthly in arrears.

PERFORMANCE-BASED COMPENSATION
Jacobs Levy manages accounts with a performance-based fee, where the basic asset-based fee is adjusted
based on annualized trailing 12 quarter returns relative to the annualized benchmark return. In the event
such an account is terminated during the first full fiscal year, the fee will generally be the prorated basic fee.
The Adviser is also paid performance-based compensation based on structures which differ from the one
described above, such as a basic asset-based fee plus a percentage of the account performance in excess
of a benchmark.
PAYMENT OF FEES AND EXPENSES
Except in the case of certain pooled investment vehicles, the Adviser does not deduct the investment
management fee (and/or performance fee, if applicable) from client accounts. Rather, the Adviser bills
clients, who pay such fees directly (or certain clients may self-remit payment of the fees). For certain pooled
investment vehicles, the administrator calculates the management fee due, and the Adviser instructs the
custodian to make payment.
In addition to paying investment management fees (and, if applicable, performance-based fees), client
accounts will also be subject to other investment expenses such as (as applicable) brokerage fees and
commissions, stock loan fees, custodial fees, bank service fees, clearing and settlement fees, taxes, duties
and other governmental charges, and other expenses related to the investment or transmittal of portfolio
assets. If client assets are invested in pooled investment vehicles, the client will additionally bear its pro
rata share of the vehicle’s operating and other expenses including organizational expenses, legal expenses,
accounting, audit and tax preparation expenses, administrator expenses, and other professional expenses.
Under certain circumstances, client assets may be invested in exchange-traded funds (“ETFs”), in which
case the client will bear the investment management fee and other fees of the ETF, which are in addition
to the investment management fee paid to the Adviser. Please refer to Item 12 of this Firm Brochure for a
discussion of the Adviser’s brokerage practices.
FEES GENERALLY
Fees (asset-based and performance-based) vary based on the investment strategy, the type and size of
the account or relationship, and other factors. The method of calculating fee arrangements is set forth in
the relevant client agreement with the Adviser (or offering memorandum in the case of a pooled investment
vehicle) and could differ from the descriptions above. Fees may be negotiable for certain clients.

Item 7. Types of Clients

Jacobs Levy’s clients consist of institutional investors such as public and private pension and profit-sharing
plans, Taft-Harley plans, endowments, foundations, and other charitable organizations, sovereign wealth
funds, investment companies, private funds, corporations, and other business entities.
The Adviser generally requires that a client invest a minimum of $50,000,000 for separate accounts. With
respect to any pooled investment vehicle that is managed by the Adviser, initial and subsequent
subscription minimums are disclosed in the offering memorandum. Separate account and pooled
investment vehicle investment minimums may vary based on investment strategy and client relationship.