Fees and Compensation — Form ADV Part 2A (12/23/2017)
[Brochure]
Item 5 Fees and Compensation
The Adviser does not have a standardized fee schedule with respect to its advisory services. The
compensation received for advisory services is typically a mixture of a management fee, and/or a
performance fee. The general principles and structures of the fees charged are detailed below:
Management Fees:
The Adviser currently charges a maximum management fee of 2% per annum, based on the
NAV (Net Asset Value) of the applicable account as of the first business day of each month and
payable (by invoice) by the client in arrears. Fees are generally payable either monthly or
quarterly in arrears.
Performance Fees:
The Adviser currently charges a maximum performance fee of 20% of the net realized and
unrealized trading gains subject to a high water mark which are payable annually, semi-annually,
quarterly, or monthly in arrears. Any performance-based compensation is in conformity with
Rule 205-3 under the Investment Advisers Act of 1940 (the “Advisers Act”), as applicable.
As mandates can have many different facets, the fee structures are negotiated on a client by
client basis. This may include the amount of notional assets and the type of advisory services
involved. The table below identifies which types of fees are currently generally charged for
various advisory services:
Service Management Fee Performance Fee
Currency Alpha Strategies Yes Client Specific
Long Only Equity Strategies Yes No
Currency Overlay Strategy Yes No
Macro Strategies Yes Client Specific
All management and performance fees (if applicable) are billed to the client before payment.
Client advisory agreements with the Funds are generally terminable upon 30 days prior written
notice, without penalty. Managed Account clients may terminate anytime without penalty.
Should an account be terminated at a time other than a NAV calculation date for fee purposes
then any fees charged in arrears will be pro-rated to reflect that date.
The Adviser’s fees do not include brokerage and transaction fees, costs and charges, and other
related costs and expenses which will be incurred by Clients regarding the trading and
maintenance of Client accounts. Clients may incur certain charges imposed by custodians,
brokers, and other third parties such as commissions, custodial fees, and other fees and taxes on
brokerage accounts and securities transactions. Additional information about brokerage and
transaction costs can be found under “Brokerage Practices” below.
The Adviser does not enter into arrangements that would require the client to pay fees in
advance.
The Cambridge Strategy (Asset Management) Limited Firm Brochure September 2016
Account Minimums and Types of Clients — Form ADV Part 2A (12/23/2017)
[Brochure]
Item 7 Types of Clients
The Adviser provides investment advisory services only to private funds (i.e., hedge funds) and
separately managed accounts (whose beneficial owners are typically pension plans, trusts or
investment companies). The minimum initial investment in the funds is U.S. $250,000, subject to
waiver, reduction, or increase by the general partner or the board of the directors, as the case may
be (but in no event will the minimum be less than U.S. $100,000). Potential investors must meet
the requirements set forth in the funds’ subscription documents in order to invest in the funds.
The typical minimum account size of separately managed accounts is U.S. $2,000,000, but
minimum account size can vary depending on the investment strategy.
The Cambridge Strategy (Asset Management) Limited Firm Brochure September 2016