Terms

Our Interests Align With Yours

Half of the 15,000 mutual funds in the US are run by portfolio managers who do not invest a single dollar of their own money in their products, raising concerns about whether fund managers’ interests are properly aligned with those of their investors.
–Financial Times (September 18, 2016)

Our interests are completely aligned with those of our investors. The general partner has the majority of his liquid net worth in the partnership and is currently its largest investor.

Key Considerations:
  • Virtually all of the general partner’s liquid net worth is invested alongside the partners in the partnership.
  • Our partnership has two lock-up periods: three years and five years.  If your investing time horizon is shorter than three years, we are not a good fit for you.
  • Class A Interests in the partnership (five-year lock) have a 1% annual management fee while the Class B Interests (three-year lock) have a 1.25% annual management fee.
  • Our partnership has a 6% cumulative annual hurdle.  We don’t earn an incentive fee unless we perform.
  • In years when our performance is greater than 6%, we will receive an incentive fee of 20% on the portion of the return over 6%.
  • Our turnover will be low, which should offer tax advantages.
  • Investors will receive a monthly statement and a quarterly write-up from the portfolio manager.
  • Investors will receive an annual Schedule K-1 (tax form).