Item 5. FEES AND COMPENSATION
Each Client’s relevant offering document or IMA fully discloses the terms of the compensation
collected by the Firm on behalf of such Client. In general, the Firm charges its Clients a
management fee. For example, the monthly management fee charged to the Fund is equal to
0.125% (1.5% annualized) of each investor’s share of the Fund’s net asset value. Each SMA’s
IMA with the Firm will define the management fees applicable to such SMA. Each SMA’s fees
will be negotiable and may be charged in advance or in arrears on a quarterly or annual basis.
Clients may have applicable fees deducted directly by the Firm from their accounts. SMAs may
choose whether the Firm directly deducts fees from their account or if fees are billed to them. In
all cases, such negotiated terms shall be described in detail in each SMA’s IMA.
Currently, no supervised person of the Firm accepts compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of
any securities.
Other Costs
Clients also may incur third-party brokerage commissions and other transaction costs, as
explained in further detail in the Brokerage Practices section below. Additional third-party
costs related mainly to custody, audit, administration, legal advice, tax advice and preparation,
banking services, and research and consulting shall also generally apply for all Clients. Investors
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in the Fund will pay (i) all expenses incurred in connection with the ongoing offer and sale of
Fund interests, including, but not limited to, printing of the offering documents and exhibits,
marketing materials and documentation of performance and the admission of investors, (ii) all
operating expenses of the Fund, such as tax preparation fees, governmental fees and taxes, fees
to the administrator, costs of communications with investors, and ongoing legal, accounting,
auditing, bookkeeping, consulting and other professional fees and expenses, (iii) all Fund
research, trading and investment-related costs and expenses (e.g., brokerage commissions,
research fees, margin interest, expenses related to short sales, custodial fees, bank service fees,
and clearing and settlement charges), (iv) technology-related costs and expenses, including, but
not limited to, software licenses, data feeds and colocation expenses, (v) regulatory and other
filing fees and expenses related to the Fund’s activities, (vi) travel expenses related to meeting
with management teams, or related to any of the other categories of expenses set forth
herein,(vii) any costs and expenses incurred by the Fund in connection with converting from a
stand-alone fund into a “feeder fund” as part of a master-feeder structure, (viii) director and
officer liability insurance or other insurance premiums for any principal or employee of the Fund,
the General Partner (as defined below), the Firm or any of the Firm’s affiliates, (ix) all fees and
other expenses incurred in connection with the investigation, prosecution or defense of any
claims, assertion of rights or pursuit of remedies, by or against the Fund, including, without
limitation, professional and other advisory and consulting expenses, and (x) any and all costs and
expenses incurred in connection with the dissolution, winding up, or termination of the Fund.
In all cases, details concerning applicable fees and expenses are set forth in each Client’s
offering documents or IMA.