Item 5 - Fees and Compensation
A. How the Firm is compensated.
For Private Investment Funds
The Firm is entitled to receive an annual management fee from the Funds in an amount equal to two percent
(2%) per annum of the net asset value of the Funds. This management fee is paid quarterly in advance.
Troubh Fund Management, LLC, an affiliate of the Firm and the general partner of the Onshore Fund (the
“General Partner”), is entitled to a performance-based allocation at the Onshore Fund level, as discussed in
Item 6 herein. Fees and allocations payable or allocable, as applicable, with respect to the Funds are
generally not negotiable. However, the Firm (or the General Partner, as applicable) may, in its sole
discretion, waive the management fee and the performance allocation, by rebate or otherwise, with respect
to any investor in the Funds, including, without limitation, employees of the Firm and its affiliates.
For Separately Managed Accounts
The Firm is entitled to receive an asset based management fee (the “Management Fee”) calculated and paid
quarterly in advance generally based on 1% of assets under management.
B. How the Firm charges fees.
Management fees charged to the Onshore Fund are calculated and deducted directly by the Firm from the
Fund’s account on a quarterly basis. Management fees charged to the Offshore Fund are calculated and
deducted directly by the Administrator from the Fund’s accounts on a quarterly basis. Management fees
charged to the SMAs are calculated by the Firm and the Firm will provide an invoice of its Management
Fees to the Custodian to pay such Management Fees from the SMAs’ assets. Management fees are prorated
for partial periods.
C. Other fees and expenses.
Each Fund is responsible for all ongoing costs and expenses associated with its administration and
operation, including but not limited to management fees, any and all research fees, interest on margin
accounts, legal, accounting and other professional fees, borrowing charges on securities sold short, custodial
fees, trustee's fees, brokerage commissions, bank service fees, interest on loans and debit balances, certain
trading and execution expenses, certain equipment and services which may be eligible as “brokerage
services” under the Section 28(e) safe harbor under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), regulatory fees, fund administration, pro rata costs of investing through a master fund (if
any), insurance premiums of the General Partner, the Firm and their principals, partners and officers
investment related travel costs, expenses incurred with respect to the preparation, duplication and
distribution to investors and prospective investors of the offering documents, annual reports and other
financial information, any taxes applicable to the Funds on account of their operations, and shall also pay
any and all other reasonable expenses related to the management and operation of the Funds as well as the
purchase, sale or transmittal of Fund assets.
The SMAs generally bear their own expenses, including, but not limited to: investment and trading
expenses, including brokerage, clearing and margin expenses and custodial fees; routine legal, tax, and
accounting fees.
See Item 12 herein for further details regarding the Firm’s brokerage practices.
D. Reimbursement for fees paid in advance.
Investors in the Funds can generally withdraw or redeem (as applicable) their interests or shares (as
applicable) in the Funds on a quarterly basis, on the last day of March 31, June 30, September 30 or
December 31 of each calendar year. In the unlikely event that there is a withdrawal or redemption prior to
the end of the calendar quarter, or in the event subscriptions are accepted other than at beginning of calendar
quarter, the management fee will be prorated based upon an investor’s actual investment in the Funds.
E. Compensation of supervised persons.
Neither the Firm nor any of its supervised persons receive any compensation from the sale of securities or
other investment products.