Fees and Compensation
The Healthcare Funds and Separately Managed Accounts:
For managing the Healthcare Funds and separately managed accounts, we receive an asset-based fee of
1.5% per year, billed in quarterly installments. This fee is billed quarterly in advance, based on the value
of the assets under management as of the first day of the calendar quarter.
TCM, as general partner, receives an incentive allocation as of December 31 each year. When profits for
the current period exceed the unrecouped net losses for prior periods, TCM receives an incentive
allocation of 20% of the profits generated. Solely for purposes of computing this fee, net profits and net
losses include unrealized gains and losses.
For separately managed accounts, we receive the performance fee, which is calculated as of December 31
each year. When profits for the current period exceed the unrecouped net losses for prior periods, we will
receive a performance fee of 20% of the profits generated. Solely for purposes of computing this fee, net
profits and net losses include unrealized gains and losses. If you withdraw capital from your separately
managed account, the performance fee for the amount withdrawn will be calculated as of the withdrawal
date.
Investors who do not meet the minimum requirements to pay an incentive allocation, will pay an asset-
based fee of 1.5%, with no incentive allocation. This asset-based fee will be billed on the same schedule
as disclosed above.
We will not manage money on a separate account basis for clients who are not qualified to pay a
performance fee.
Investors in the Funds are required to invest for a period of one year before making any withdrawals.
After one year, investors may make withdrawals as of the last day of any calendar quarter by providing 45
days written notice.
For separately managed accounts, we generally require that you provide authorization for us to deduct our
fees directly from your investment account. Important information about the deduction of management
fees:
You must provide authorization for us to pull fees by initialing the appropriate section of our
investment management agreement.
You will receive a detailed invoice each quarter which outlines our fees and how they are
calculated at the same time we request payment from the custodian.
You will receive a statement from your custodian which shows all transactions in your account,
including the deduction of the management fee.
You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
do so.
You may elect to pay by check or wire transfer rather than having payment deducted directly from your
account.
You may terminate our advisory relationship by providing 30 days written notice. We will prorate the
asset-based advisory fees earned through the termination date. We will then calculate the performance
fee due, offset it against the refund for the asset-based fee, and send an invoice showing the amount due
to us or owed to you. We process refund payments within 30 days of the termination date and, if
applicable, will send you a check or refund your investment account.
General Disclosures
In order to pay a performance fee you must meet certain requirements. Typically our new clients must
meet one of the following criteria:
Have a net worth (or together with spouse have a net worth) of at least $2.2 million, excluding
value of primary residence.
Have at least $1.1 million invested with us.
Existing clients are subject to the standards in place at the inception of the relationship. Our Investment
Management Agreement provides additional qualification standards.
All performance fees will be charged in a manner that complies with Rule 205-3 of the Investment
Advisers Act of 1940, as amended from time to time.
Incentive allocation and performance fee arrangements could create an incentive for us to make
investments that are riskier or more speculative than would be the case in the absence of the arrangement.
In some circumstances, TCM and/or Tamarack Advisers may receive increased compensation as a result
of unrealized appreciation as well as realized gains.
Other Costs Involved
In addition to our advisory fees shown above, expenses associated with making investments on behalf of
clients will also be incurred. These fees include:
mutual fund loads (if applicable). These charges are paid to brokers as a form of commission.
management fees for ETFs and mutual funds. These are fees charged by the managers of the ETF
or mutual fund and are a portion of the expenses of the ETF or mutual fund.
brokerage costs and transaction fees for any securities or fixed income trades. These are
generally charged by your custodian and/or executing broker.
Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”