Item 5 – Fees and Compensation
In the Managed Opportunities program, we currently charge new clients an annual management fee of
1.5% (one and one-half percent) of assets managed. The above fees are inclusive of those fees we pay
sub-advisors. The management fees for clients may differ from the above schedule because of relationships
with us or relationships with other accounts managed or provided service by us; and/or fee structures
offered in prior years. Certain clients may also be subject to negotiated fee arrangements where fees are
different than the basic fee structure. Fees are negotiable depending upon the specific nature of services
rendered, the complexity of a client’s investment management needs, and/or the value of a client’s assets
under management. We reserve the right to change our fee schedule for all clients or selected clients for
any reason. If changes are made to an existing client’s fee schedule the change will not go into effect until
the later of thirty days after the client is sent notice of the change or the beginning of the next billing quarter
after the client receives notice of the change.
Asset-based management fees shall be due and payable in quarterly installments in advance, based on
the net market value of the assets in the account as reflected on the custodian’s account statement on the
last business day of the previous quarter. At the inception of an account, the fee will be prorated for the
remainder of the current billing period and will be based on the initial contribution of assets. Fees based on
assets added to an account in mid-quarter will be prorated.
Unless we agree otherwise, all fees will be deducted from client accounts and paid directly to us by the
accounts’ custodian(s) during the month following such fees becoming due without further notice to clients.
In some situations, clients may designate one account, or certain accounts, as the account(s) to have fees
deducted for multiple accounts managed as one portfolio.
While we believe that our management fees are reasonable in relation to the type and quality of services
provided, fees for comparable services offered by other investment advisors, financial service providers, or
other investment programs/products are lower.
Managed Opportunities clients may terminate an investment advisory agreement upon 30 days written
notice to us, or we may terminate a client’s investment advisory agreement upon 30 days written notice to
a client. The termination date for a client relationship is 30 days after the provision of notice or the end of
next calendar quarter, whichever is sooner. As of the termination date, any prepaid asset-based fees will
be promptly refunded on a prorated basis.
In general, we expect that after assets are initially invested, the annual turnover rate for client assets will
range from approximately 10% to 30% of assets under management. During 2025 the annual turnover rate
for various size existing clients was an approximate range of 5% to 15%.
Client assets not invested in portfolio securities are usually held in money market funds until we find suitable
investment opportunities and/or when such funds are considered the best use of uninvested client assets.
Clients are advised that when assets are invested in such funds, management fees are assessed as an
expense and, in effect, two advisory fees are being paid, one to the investment advisor of the money market
fund and one to us.
As investment manager for Long Point, we receive compensation. This compensation includes both
management fees and an incentive allocation or performance fee related to each Long Point Series. Long
Point related clients should see the Confidential Offering Memorandum of Long Point Investors, L.P., Series
Limited Partnership Interests, for a detailed discussion of the strategies and types of investments contained
in Long Point; investment conditions and risks; and the fees, expenses, and incentive allocations related to
an investment in Long Point. This document is available at any time upon request by a Long Point partner
or other accredited and qualified investors considering partnership.