Socratic Fund Management LP

Item 5: Fees and Compensation

Fund clients: Socratic charges asset-based management fees to its Fund clients. As Socratic’s
fund clients are configured as a master feeder structure, Socratic charges its management fees at
the master fund level only. In this capacity, Socratic is paid a management fee as of the
beginning of each fiscal quarter equal to 0.375% of the sum of (i) the aggregate net asset values
of each feeder fund investor’s special account at the master fund level and (ii) the aggregate
book values of each feeder fund investor’s special illiquid account at the master fund level (if
any) (i.e., 1.5% per annum).
Fees for fund clients are generally not negotiable, however, Socratic reserves the right to waive
all or a portion of the management fee. Management fees are pro-rated for partial periods.
Management fees are deducted directly from fund clients and fund clients (including investors in
fund clients) may not request to be billed for fees incurred.

Managed account clients: All of our managed account clients are qualified purchasers and,
therefore, this brochure does not contain our advisory service fee schedule for these clients. All
of our managed account clients may negotiate asset-based fees. These fees are fully disclosed in

each managed account agreement. Managed account clients are billed for management fees.
Such fees are not directly deducted by Socratic.

Other fees and expenses: In connection with our advisory services, our fund clients bear all of
their own expenses. Fund client expenses will include legal, accounting, auditing and other
professional fees and expenses (including, without limitation, expenses of consultants and
experts), administration expenses and fees of the administrator (including fees and expenses
related to order and risk management systems), research and research-related expenses
(including third-party research reports, and travel expenses related to investigating investment
opportunities), expense related to research databases and equipment related thereto used in the
investment and investment management process for the funds, and investment expenses such as
brokerage commissions, interest on margin accounts and other indebtedness, custodial fees, bank
service fees and other reasonable expenses related to the research, purchase, sale and/or
transmittal of fund client assets or potential assets.

Our managed account clients pay for all of their own operating expenses. This includes all
expenses incurred with their account transactions, such as custodial fees, brokerage
commissions, clearing fees, interest and withholding or transfer taxes.

As a general rule, all trading errors affecting a client’s account are promptly investigated and
resolved fairly.

See Item 12, Brokerage Practices.

Neither Socratic nor any of its supervised persons accepts compensation for the sale of securities
or other investment products, including asset-based sales charges or services fees from the sale
of mutual funds.

Item 7: Types of Clients

All of our clients are private-pooled investment vehicles (hedge funds) and foundations.

Fund clients: Our fund clients rely on certain exclusions from the definition of “investment
company” in the Investment Company Act of 1940, as amended. Accordingly, none of our fund
clients are registered as investment companies with the SEC. Investors in our fund clients must
all be accredited investors as that term is defined by Regulation D of the Securities Act of 1933,
as amended and, to the extent required, investors in our onshore feeder fund clients must also be
qualified clients as defined by the Investment Advisers Act of 1940, as amended. Investors in
fund clients are also generally required to make a minimum initial investment of $1,000,000.
Either Socratic or an affiliate of Socratic, has the discretion to, and on occasion may, accept
investments for a lesser amount.

Managed account clients: All managed account clients are required to be accredited investors
and qualified purchasers as defined by Rule 2(a)51(A) of the Investment Company Act of 1940,
as amended. The general minimum investment required to open a separately managed account is
typically $5,000,000. We have the discretion to, and on occasion may, accept investments for a
lesser amount.

This firm brochure is not an offer to invest in our fund clients.