Item 5 - Fees and Compensation
As explained more fully in each Clients’ Governing Documents, Snowhook’s compensation for the
investment advisory services it provides is generally comprised of an asset-based management fee
(“Management Fee”) and a performance fee (the “Incentive Allocation”) that is based on a share of
the realized and unrealized net profits or capital appreciation of the Client’s assets.
Each Fund offers two classes (each, a “Class”) of interests with varying Incentive Allocations and
liquidity values. Snowhook, in its sole discretion, may reduce, waive, assign, participate or
otherwise share the Management Fees or Incentive Allocations. Modification of these terms may,
in some cases, be based upon, among other things, the amount of an investor’s investment, an
agreement by an investor to maintain such investment for a specified period of time or other
commitments by an investor. Additionally, Snowhook’s officers and employees may invest on
terms that are more advantageous than those of Snowhook’s Investors.
The fees and expenses applicable to each Client is set forth in detail in the Client's Governing
Documents. A summary of fees and expenses is provided below.
Management Fee
Snowhook is paid a Management Fee, each quarter that is based on the net asset value of the Client
account. The Management Fee will be prorated for any period that is less than a full quarter.
Unearned fees will be refunded, as appropriate, for any fees paid in advance.
For the Funds, Management Fees range in an amount equal to 0.25% to 0.375% (1% to 1.5% per
annum). Snowhook, in its sole discretion, may, in effect, waive or reduce the Management Fee to
be paid to it by any investor. Fees for Managed Accounts are negotiated on a case-by-case- basis.
Fees will be calculated in accordance with each Clients’ Governing Documents.
Snowhook, in its sole discretion, may, in effect, waive or reduce the Management Fee to be paid to
it by any investor or Client. To the extent the Management Fee is paid at the Feeder Fund level, no
Management Fee will be paid at the Master Fund level.
Incentive Allocation
The General Partner is entitled to receive an Incentive Allocation, which is compensation that is
based on a share of net capital appreciation of the assets of a Fund. This Incentive Allocation ranges
from 17.5% to 20% for the Funds. The General Partner may, in its sole discretion, waive or reduce
the Incentive Allocation to be allocated to it by any investor. Incentive Allocations paid by Managed
Accounts are negotiated on a case-by-case basis.
Expenses
In addition to paying a Management Fee and Incentive Allocation, Investors in the Funds and
Managed Accounts typically pay, as applicable, investment-related expenses. Such expenses
include but aren’t limited to brokerage transaction costs (including use of an outsourced trader),
custodial fees, research expenses, expert networks, bank service fees, interest on borrowings, taxes,
tax preparation fees, audit fees, accounting fees, execution and other third-party information
software and systems, portfolio management and accounting systems, exchange fees, fees charged
by an administrator, expenses attributable to regulatory filings to the extent made with respect to
the Client or the assets of a Client’s directors’ fees, legal expenses and private fund related
insurance costs, such as D&O and E&O insurance for Snowhook, the General Partner and Fund
directorship liability. Snowhook seeks to allocate expenses fairly, equitably and consistent with the
Client’s Governing Documents. Generally, Snowhook’s expense allocation methodology is to
allocate permissible expenses pro rata amongst eligible Client Accounts based on Client capital
balances. Expenses shared by each of the Funds and Managed Account are typically allocated pro
rata based on the value of each of the Client Accounts. When allocating expenses, Snowhook must
interpret the Governing Documents and make determinations whether expenses are allocated and
paid, in full or in part, by a Client and/or Snowhook, which creates a conflict of interest.
More detailed information about the fees and expenses may be found in the applicable Governing
Documents.