KMF Investments Management LLC

Item 5   Fees and Compensation

For the Managed Account clients, the registrant charges asset management fees of up to 2.5%
(annualized, but assessed daily) of assets. For specific qualified clients, the registrant may negotiate a
combination of asset management fees and performance fees up to 20% of profits subject to high water
marks. The exact fees are documented in client advisory agreements. The advisory contract may be
terminated or withdrawn at the discretion of the client or the registrant.

The client incurs costs of trading commissions and fees charged by its broker. We have strived to find
low-cost brokers to minimize such frictional costs while providing effective execution capabilities.
Currently these brokerage services are provided by Interactive Brokers. Additionally, costs incurred for
research, travel, and office expenses are not borne by clients.

Item 7      Types of Clients

The scope of this brochure is for investors and prospective investors of KMF Investments seeking
individually managed accounts. The investment manager focuses on clients that are sophisticated
investors who understand the risks and benefits associated with long-term value investing strategies (see
Investment Program). Clients can be individuals, IRAs, trusts, businesses and other entities.