Fees and Compensation — Form ADV Part 2A (12/20/2018)
[Brochure]
Item 5: Fees and Compensation
A. Pitts Bay’s Fees and Compensation. Pitts Bay is compensated for the services it performs
through a management fee, as described below. Management fees may be subject to
negotiation in the Adviser’s discretion. The specific management fee rates and method of
calculation and payment are set forth in the applicable Fund’s offering documents and related
Pitts Bay Investment Management
Form ADV 2A
Brochure Date: December 20, 2018
governing documents. Certain affiliates of Pitts Bay may also receive underwriting fees and
commissions which are set as a percentage of the premium in relation to a reinsurance
transaction entered into for the Fund’s benefit. Please see Item 10 for additional information.
Pitts Bay reserves the right to waive or reduce management fees with respect to any investor,
including its principals, employees and affiliates as may be determined in Pitts Bay’s sole
discretion from time to time. In general, investments by principals and employees of Pitts Bay
or their respective affiliates will not be subject to management fees.
• Management Fee. Pitts Bay receives a quarterly management fee, paid in arrears,
from the Master Fund equal to a percentage of each investor’s commitment during
the relevant risk period as defined in the Fund’s offering documents. The
management fee is equal to 0.20% of each investor’s commitment.
B. Deductions. Management fees are charged on a quarterly basis, paid in arrears. The entire
Management Fee is reserved by the Fund (as further described in the offering documents).
Expenses. The Investment Manager bears the Fund’s organizational, offering and
operating expenses, other than any taxes payable by the Fund and any extraordinary
expenses (such as litigation costs or indemnification expenses) of the Fund, which shall
be borne by the Fund. The Investment Manager also bears its own operating expenses,
including salaries, rent and other general and administrative expenses.
C. See Item 12 (Brokerage) for further information about Pitts Bay’s use of brokers.
D. Compensation for Sales of Securities: Pitts Bay does not accept compensation for the sale of
securities or other investment products.
The specific management fee rates and method of calculation and payment are set forth in the
applicable Fund’s Offering Memorandum and other applicable governing documents. The
information contained herein is a summary only and is qualified in all respects by such
documents.
Account Minimums and Types of Clients — Form ADV Part 2A (12/20/2018)
[Brochure]
Item 7: Types of Clients
Pitts Bay provides investment advice primarily to clients that are privately offered pooled
investment vehicles open for investment by sophisticated institutional and high net worth
Pitts Bay Investment Management
Form ADV 2A
Brochure Date: December 20, 2018
investors, as described in this Brochure. Investors will be required to satisfy certain minimum
regulatory suitability requirements and to make the minimum investment, generally $1,000,000,
required for the particular Fund. See Item 4 – Advisory Services, above.