ITEM 5 – FEES AND COMPENSATION
A. Compensation for Advisory Services
The Funds
Solstein Capital Partners, LP
Fees for Solstein Capital Partners, LP are described in the fund’s respective Private
Placement Memorandum (“PPM”). Investors are generally charged an advisory fee,
payable monthly in advance, based upon the net asset value of the capital account of each
investor on the first day of each calendar month. The funds also charge a performance-
based fee which is charged annually. Fees are negotiable and at the General Partner’s
discretion. Certain Limited Partners invested in the Fund at times when the Firm was
offering discounted fees and therefore will pay a lower management fee and/or
performance-based fee than Limited Partners who did not invest under those
circumstances. Generally speaking, the investors in the Fund will pay a management fee
and a performance fee or some combination of the two. There are also some Limited
Partners who do not pay a management fee or a performance fee.
Strike King LLC
Strike King LLC is a first loss strategy and there are no management or performance fees
associated with this fund. If the fund outperforms its benchmark, the investors of the Fund
and Solstein Capital receive a percentage of the profits earned, which is determined after
all expenses of the fund are paid (i.e. administrative, audit, tax). These profits are assessed
and paid out quarterly.
Separately Managed Accounts
Management fees paid by the Firm’s separate account clients are a percentage of assets
under management and are currently individualized subject to negotiation based on account
size and objectives. Fees will be fully disclosed in the client’s investment advisory
agreements. The fee for this service will not exceed 1.00% annually. Fees are calculated
using the average assets under management for the quarter, paid in arears.
B. Payment of Fees
All fees and expenses borne by investors of the Solstein Capital Partners, LP Fund are paid
to the Firm out of the respective investor’s capital account. Fees for separately managed
accounts are either invoiced to the clients and paid to the Firm or directly debited from the
separately managed accounts’ custodial account. Fees will only be directly debited
following written authorization from the client and clients will still receive an invoice
detailing the calculation the fee.
C. Other Fees and Expenses
The Funds
Solstein Capital Partners, LP
Solstein Capital Partners, LP will pay to the Firm all other expenses, liabilities and
obligations attributable to the activities of the Fund and the General Partner, including,
without limitation: (i) interest charges, taxes and expenses of an extraordinary nature; (ii)
costs, expenses, liabilities and obligations attributable to acquiring, financing, holding,
monitoring and disposing of investments, including, without limitation, dividends on short
sales, brokerage fees and commissions and fees and expenses of custodians or depositories
appointed for the safekeeping of the Fund’s cash, securities or other property; (iii) legal,
accounting, bookkeeping, auditing, travel, insurance (including directors and officers and
errors and omissions liability insurance), litigation and indemnification costs and expenses,
judgments, settlements and similar fees and expenses; (iv) expenses of registering any
securities under Federal, state or foreign securities laws; (v) expenses of preparing, printing
and distributing reports and other documents to be distributed to the partners (including the
preparation of the Fund’s financial statements, tax returns and Schedule K-1s); (vi)
expenses relating to reporting to any governmental agency; (vii) all fees and expenses of
attorneys, business consultants, appraisers and accountants, investment bankers and other
third parties incurred in connection with the investigation, purchase, proposed purchase or
sale of securities; and (viii) taxes, fees or other governmental charges levied against the
Fund.
Strike King LLC
The investors of Strike King LLC are responsible for direct expenses associated with the
Fund, such fund administration, audit and tax.
Separately Managed Accounts
Clients may incur fees in addition to the management and performance fees paid to
Solstein. This can include brokerage commissions and other custodian fees. Please refer to