ITEM 5 – FEES AND COMPENSATION
THE FUNDS
Sigma is generally entitled to management fees and/or performance-based compensation from the Funds.
Each of the Funds generally pays Sigma a management fee based on the value of the applicable Fund’s
assets under management. The management fee is generally paid monthly in arrears, calculated at an annual
rate ranging from 1% to 2% of the net assets of the applicable Fund. The management fees that Sigma
receives from the Funds are generally prorated for any period that is less than a full calendar month, and
are adjusted for subscriptions and redemptions made during a month.
Sigma is also generally entitled to receive performance-based compensation from the Funds equal to 10%
to 20% of the net profits of each investor in the applicable Fund, subject to a high watermark. Sigma
generally receives such performance-based compensation quarterly and upon redemption. The
performance-based compensation Sigma receives is not subject to a claw back.
SCL enters into a separate fee arrangement with Sigma for the advisory services it provides. The Funds
are not separately charged for SCL’s services to Sigma pursuant to the investment advisory agreements.
The description above represents our typical compensation arrangements. However, Sigma may enter into
negotiated agreements with one or more investors which provide for the waiver or modification of certain
terms of the offering of interests in a Fund of Funds, including the fees and compensation otherwise
applicable to such interest(s). To the extent that a Fund of Funds invests in a private fund managed by a
Manager with which we are affiliated, a portion or all of the compensation paid to such Manager may be
offset against or reduced by the compensation Sigma receives from the applicable Fund of Funds. Further
detail regarding calculation of a Fund of Funds’ compensation arrangements can be found in the applicable
Fund of Funds’ offering documents, which are provided to potential investors.
Sigma receives management fees and performance-based compensation from the Fund of Funds’ respective
accounts.
In addition to management fees and, if applicable, performance-based compensation, the Funds are also
subject to other expenses such as administrative, legal, accounting, compliance, custodial, audit expenses
and costs, fees, liabilities, taxes and expenses relating to or arising from the investment of assets, Manager
fees and expenses, third-party compliance products and services, borrowing, financing or settlement
arrangements, analysis and research of investments or potential investments (including subscriptions,
publications or related services), risk management and due diligence associated with the development and
maintenance of the portfolios, regulatory filings, investor relations and independent directors’ fees. Details
regarding the expenses borne by each of the Funds are available in the respective Funds’ offering
documents, which are provided to potential investors.