|$100,000 – $249,999 –||1.5% of assets under management/year|
|$250,000 – $499,999 –||1.25% of assets under management/year|
|$500,000 – $999,999 –||1% of assets under management/year|
|$1,000,000+ –||20% of profits*|
MINIMUM INVESTMENT: $100,000.
Management fees are billed annually. The assets under management fee is based on average assets under management during a year. For instance if you have $200,000 average assets under management, the fee will be $2500 ($200,000 * 1.25%).
Performance fees are billed annually. The performance fee is based on the profits earned during the year. For instance, if you begin the year with $1.2 million and end the year with $1.3 million, profits are $100,000 and the performance fee is 20% of those profits or $20,000.
Performance fees are also subject to what is known as the “high water mark” provision. For instance, if in the prior year your account decreased from $5 to $4.5 million, future performance fees will only be charged for returns above $5 million. If in the following year, your account increases to $4.75 million there will be no performance fee as it will still be below your “high water mark” of $5 million.
Performance based fee models for Qualified Investors only.