We view our clients as long-term partners. Therefore we work as a partnership striving to achieve a complete alignment between our partners (clients) and the firm:

• Low management fees: Starting at 60 basis points (bps), decreasing with the size of the partnership to a floor of 20 bps. The management fees goal is to cover the costs of the partnership. They are not a profit objective in themselves like most of the Asset Management industry is pursuing. As the partnership grows in size the fees will be reduced accordingly. The aim is to remove the bias towards over active trading & portfolio rotation used to justify high fees charged to clients. 

• Performance fees: 20% of returns exceeding a 6% USD hurdle rate with a high watermark.

• Reinvestment:
  At least 50% of performance fees earned by management shall be reinvested into the partnership. A significant portion of our personal assets is invested in this strategy.

• Capital Commitment:
  • Partners are encouraged to invest money they can commit for the long term, effectively placing it in a “Coffee Can” to be opened after 10 years.
  • Additional opportunities may be offered to partners before seeking external investors when they arise. In general the partnership assets will grow when opportunities arise.
    
    
• Exiting the partnership: this is possible with a six-month notice period. The shares will be returned in kind or sold for cash.