For Qualified Clients of the Global Opportunities & Event Driven Strategy:
Qualified clients may elect to pay us a performance fee in lieu of an asset-based fee. The performance fee is calculated as of the last day of the applicable quarterly period. When profits for the current quarter exceed the unrecouped net losses for the 20 quarters (i.e. 5 years) immediately prior to the period end, Triple Summit will receive a performance fee of 15% of the profits generated. Solely for purposes of computing this fee, net profits and net losses include unrealized gains and losses. If you withdraw capital from your account, the performance fee for the amount withdrawn will be calculated as of the withdrawal date.
PLEASE NOTE: The receipt of performance fees could create an incentive for us to make investments that are riskier or more speculative than would be the case in the absence of the arrangement. In some circumstances, we may receive increased compensation as a result of unrealized appreciation as well as realized gains.
In order to be eligible to pay a performance fee, a client must meet certain requirements. Typically, our qualified clients meet one of the following criteria:
- Individually or jointly (with a spouse) possess a net worth of at least $2 million, excluding primary residence.
- Have at least $1,000,000 invested with us.
Additional qualifications are also provided in our Investment Management Agreement. Please also refer to SEC Rule 205-3.
All performance fees will be charged in a manner that complies with applicable rules and regulations, including Section 260.234 of the California Code of Regulations.