ITEM 5 – FEES AND COMPENSATION
Private Pooled Investment Vehicles
Unless otherwise provided in an applicable side letter, WeatherStorm’s compensation for its
advisory services to the Fund is subject to a monthly asset-based management fee deducted and
paid monthly in arrears, at an annualized rate of 1.5% of such Investor’s capital account in the
Fund. The Fund has the authority to create new classes of interest and enter into side letter
arranagements with one or more investors that provide investor with additional and/or different
rights (including, without limitation, with respect to access to information, management fees,
incentive allocations, minimum amounts, investment portfolios, and liquidity terms) than other
investors.
Investors in WeatherStorm’s Fund are also subject to an incentive allocation or incentive fee
(performance allocatins/fees on increases in NAV). While specifics of any arrangement are set
forth in Fund offering materials and specific to the Fund, the rate is a 15% incentive allocation or
incentive fee on an annual basis, subject to a standard high-water mark. Incentive allocations or
fees are allocated/deducted directly from applicable accounts.
The Fund advised by WeatherStorm will, as described in applicable Fund offering material, bear
other costs and expenses related to their investment activity and operations as described in the
offering materials. These typically include such items as third-party custodial fees; brokerage
commissions, transfer taxes and other transaction costs associated with securities transactions;
third-party research costs; fund administration expenses (including costs to employ a third-party
administrator); professional fees (including legal and audit related fees); and fund
formation/organizational/offering costs (formation and organizational costs are generally
amortized).
WeatherStorm Capital, LLC Form ADV Part 2A: WeatherStorm Capital, LLC Brochure
Investment Management Services
The investment advisory for SMAs varies depending on the nature of the strategy managed by
WeatherStorm. The advisory fees are negotiable upon the discretion of WeatherStorm and
individual client circumstances.
All management fees are paid monthly in arrears based on the value of the assets under
management at the end of the preceding month. For periods of less than one month our fees will
apply on a pro rata basis, which means that the advisory fee is payable in proportion to the
number of days in the month for which you are a client.
We will invoice each SMA for our fee. The qualified custodian is obligated to deliver an account
statement to you at least quarterly. These account statements will show all disbursements from
your account, including the amount of the management fee. You should review all statements for
accuracy.
You may terminate the investment advisory agreement upon 90-days’ written notice to
WeatherStorm. You will incur a pro rata charge for services rendered prior to the termination of
the investment advisory agreement, which means you will incur advisory fees only in proportion
to the number of days in the month for which you are a client.
Other Fees for Separately Managed Accounts
SMAs typically bear certain expenses in addition to investment advisory fees, including custodial
fees, transaction charges and/or brokerage fees when purchasing or selling securities. The broker-
dealer or custodian through whom your account transactions are executed typically imposes these
charges and fees. We do not share in any portion of the brokerage fees/transaction charges
imposed by the broker-dealer or custodian.
The use of margin loans to purchase securities and/or futures may be utilized on behalf of your
portfolio. Our separately managed account fees are based on the cash value of your account,
which includes the value of the securities purchased on margin. While a negative amount may
show on your brokerage statement for the margined security as the result of a lower net market
value, the amount of the fee is based on the cash value. As a result, the recommendation of
margin loans to fund security and/or futures purchases may cause a conflict of interest because it
results in a higher market value of securities and therefore we receive a higher fee. The use of
margin may also result in interest charges in addition to all other fees and expenses associated
with the security or futures involved.
Lower fees for comparable services may be available from other sources. Fees based on
performance will meet all requirements as specified under the California Corporate Securities
Law of 1968. The expenses of the Fund, including WeatherStorm’s management fee and
performance-based compensation, may constitute a higher percentage of average net assets than
would be found in other investment vehicles.