The Fund operates under SEC Rule 506(c) §2.1 and will be in the Incubation Period §2.2 from its launch until the time it has obtained all the required licenses and registrations. In trading the Fund’s Methodology, the Investment Manager maintains strict Risk Management §5.4 and Money Management §5.5 disciplines. The Instruments §5.2 used are limited to liquid markets that are open around the clock. The Fund rarely has more than two full Positions §5.3 open at any one time and each full Position rarely risks more than 5% of the AUM of the Fund §6.8.
The Performance of the Fund §6.10 and of the Limited Partner §6.13 is expressed as a percentage and represents rate of return over time, net of all Fees §3.3. Once the Fund has ended its Incubation Period §2.3, the Investment Manager will begin to charge Fees §3.3 which are based on the AUM of the Limited Partner(s) §6.11. The fee structure is based upon the Hurdle Rate §3.4 set in the Private Placement Memorandum and the High Water Mark §3.5 of the Limited Partner. A monthly Management Fee of 0.5% annualized is charged on the last day of the month. On the last day of the Fiscal Year §1.5, when the Performance of the Limited Partner §6.13 exceeds the Hurdle Rate plus the High Water Mark §3.5, the Investment Manager receives 1.5% of AUM of the Limited Partner and 20% of the Performance above the Hurdle Rate and High Water Mark §3.7.