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.
The description above represents our typical compensation arrangements. However, Sigma may enter into
negotiated agreements with one or more investors or affiliates which provide for the waiver or modification
of certain terms of the offering of interests in a Fund, including the fees and compensation otherwise
applicable to such interest(s). To the extent that a Fund 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. Further detail regarding
calculation of a Fund of Funds’ compensation arrangements can be found in the applicable Funds’ offering
documents, which are provided to potential investors.
Sigma receives management fees and performance-based compensation from the 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.
THE CELLS, THE SERIES AND THE TRADING VEHICLES
Sigma is generally entitled to a platform fee from the Cells, Series or Trading Vehicles. Each of the Cells,
Series or Trading Vehicles generally pays Sigma a platform fee based on the value of the applicable Cell’s
Series’ or Trading Vehicle’s assets under management. The platform fee is generally paid monthly in
arrears, calculated at an annual rate ranging from 0.25% to 0.5% of the allocated assets of the applicable
Cell or Trading Vehicle. The platform fees that Sigma receives from the Cells, Series and Trading Vehicles
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.
The description above represents our typical compensation arrangements. However, Sigma may enter into
negotiated agreements with one or more investors or affiliates which provide for the waiver or modification
of certain terms of the offering of interests in a Cell, Series or Trading Vehicle, including the fees and
compensation otherwise applicable to such interest(s). To the extent that a Cell, Series or Trading Vehicle
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 Cell, Series or Trading Vehicle. Further detail regarding calculation of a Cell, Series
or Trading Vehicle’s compensation arrangements can be found in the applicable supplement to the Managed
Account Platform’s offering documents (“Cell Particulars” or “Series Particulars”) for the relevant Cell or
Series, which are provided to potential investors.
In addition to platform fees, the Cells, Series and Trading Vehicles 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, Trading Advisor 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 Cells, Series or Trading Vehicles are available in the relevant Cell Particulars or Series
Particulars that are supplemental to the offering documents of the PCC and LLC, which are provided to
potential investors.
For certain Cells, Series or Trading Vehicles, Sigma is also generally entitled to receive performance-based
compensation 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.