Item 5 Fees and Compensation
A. Fees for Advisory Services
Private Fund Management and Performance-Based Fees
Private Funds, Generally
Although Stoic Point does not generally provide Management Fee discounts, it may negotiate a unique fee
structure for large Fund investors. Fee variances, if any, that differ from the standard Management Fee will
be disclosed and agreed upon in a written agreement signed between Stoic Point and the applicable
investor(s).
All performance fees charged by Stoic Point to the Fund are subject to a high-water mark, which means
that Stoic Point is only entitled to a Performance Fee to the extent that net income allocated to investors for
the period exceeds any net losses previously allocated to the investors since the last date a Performance Fee
was calculated. This provision prevents the Firm from receiving Performance Fees on net income that
simply restores prior net losses.
Stoic Point does not represent that its Performance Fees or the manner of calculating them is consistent
with performance-based fees charged by other investment advisers under the same or similar circumstances.
The performance-based fees charged by Stoic Point may be higher than those charged by other investment
advisers for the same or similar services. Please see Item 6, below, for additional discussion of Performance
Fees.
Lower fees for comparable services may be available from other sources.
Stoic Point Alpha Capital LP
With regard to Stoic Point Alpha Capital LP, Stoic Point offers Class A and B Interests. Stoic Point
previously offered Founders Class Interests, which are subject to different fee structures, as described
below.
With respect to Class A and Class B Interests, Stoic Point will be paid a management fee (the “Management
Fee”) equal to 1.25% per annum (approximately 0.104% per month). The Management Fee may be lower
than 1.25% in certain instances and for future private funds. With respect to Founders Class Interests, the
Management Fee paid to Stoic Point declines as subscriptions in Stoic Point Alpha Capital LP increases
such that the Management Fee is 1.25% per annum (approximately 0.104% per month) until subscriptions
total $100 million and then 1% per annum (approximately 0.083% per month) until subscriptions total
$200 million. After subscriptions total $200 million, Founders Class investors will pay a Management Fee
of 0.75% per annum (approximately 0.063% per month). All Management Fees are calculated and charged
monthly in advance based on the value of each investor’s capital account as of the first day of the month.
Investors in Stoic Point Alpha Capital LP pay a Performance Fee, calculated and charged annually in
arrears, subject to certain performance thresholds (each a “Hurdle”) depending on the Class of Interest held
by an investor. This Performance Fee structure is intended to allow investors a choice of Hurdle, as
described in more detail as follows. For Class A Interests the Hurdle is an annualized rate of return of 6%
and for Class B Interests the Hurdle is equal to the return of a benchmark index, the Russell 2000, during
the same performance period (i.e. calendar year or shorter period with respect to an individual investor, as
applicable). The Performance Fee for Founders Class Interests is equal to 10% of realized and unrealized
net income allocated to each investor that exceeds the applicable Hurdle. The Performance Fee for Class A
and B Interests is equal to 15% of realized and unrealized net income allocated to each investor that exceeds
the applicable Hurdle. For the avoidance of doubt, Performance Fees are not charged if the realized and
unrealized net income allocated to an investor does not exceed the applicable Hurdle.
SMA Investment Management Services
With respect to the Client, Stoic Point is a fee-only investment adviser. Stoic Point’s fee for SMA advisory,
portfolio management, and/or non-discretionary advisory services (“IA Fee”) may be based on a percentage
of the Client’s assets under management or, as discussed below in Item 6, Stoic Point may charge SMA
Clients performance-based fees or other fees based on share of capital gains or capital appreciation in
addition to or in lieu of Management Fees.
IA Fees that are Management Fees are typically paid monthly or quarterly in advance pursuant to the terms
of the respective Client’s Investment Advisory Agreement. IA Fees are based on the market value of assets
under management at the beginning of the relevant calendar month or quarter, as applicable. IA Fees that are
management fees typically range from 0.5% to 1.5% per annum depending on the size of the SMA, the
services rendered, and the strategy employed. IA Fees that are Performance Fees typically range from 10% to
20% per annum, will be calculated and charged quarterly or annually in arrears, and may be subject to a Hurdle
and/or high-water mark pursuant to the terms of the respective Client’s Investment Advisory Agreement. For
the avoidance of doubt, the fee amount, timing of calculation/billing, and whether and in what amount
performance fees are subject to Hurdle(s) and/or high-water mark is negotiable with each Client and will be
reflected in each Client’s respective Managed Account Agreement.
Fees for SMA Clients will be calculated as follows:
• The formula for the Management Fee will be [monthly/quarterly fee %] x account balance at the
beginning of the period.
• The formula for the Performance Fee will be (realized/unrealized account performance over the
[quarter/year] [minus the hurdle rate]) x [quarterly/annual fee %], subject to the high watermark.
Fees may be negotiable at the discretion of Stoic Point. All securities held in SMAs advised by Stoic Point
will be independently valued by the Client’s Custodian. Stoic Point will not have the authority or
responsibility to value such portfolio securities.
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