To Our Investing Partners and Readers
Beginning in January of 2017, Otsi Keta Capital lowered fees charged to investors. Reducing our fees better positions the fund to achieve our outperformance goals and increase our attractiveness to new investors. As the financial markets remain dynamic, we try to follow the changes while keeping true to our original business plan.
As our current investors know, we have produced excellent long-term returns against both the index and other investment managers. As our assets have continued to grow, we are able to share some of the benefits of our larger asset base with our limited partners. The table below outlines the schedule based on account size. It also shows cumulative investor performance from inception – taking into account the new fee schedule.
Fee Schedule & Performance From Inception
Assets Invested
< $2.5MM
FEE SCHEDULE
1.5% / 10%
Performance Since Inception
$2.5-$5MM
FEE SCHEDULE
1.5% / 5%
Performance Since Inception
> $5MM
FEE SCHEDULE
1.5% / 0%
Performance Since Inception
This performance data represents from inception through October 31, 2024, and does not guarantee future results. There is no guarantee that the circumstances leading to this performance will be replicated in the future. Investment return and principal value will fluctuate and principal investment may be worth less than its original cost when redeemed. Year-to-date and since inception total return are the compounded rate of change in value during a period of investment, including the value of shares acquired through reinvestment of all dividends and of all capital gain distributions for the period. These figures are based on an investment at the beginning of the period through the end of the period and reflect all applicable fees and expenses. These figures do not reflect taxation a shareholder would pay upon a distribution or redemption. Recent performance may be less than the figures shown.
We are proud of the returns we have generated for our limited partners since our inception and hope these fee breakpoints will encourage our current clients to expand their relationship with us and entice new clients to begin working with us.
Running the Fund continues to provide us with perspectives on what makes for a successful business and a successful investment. We think the most important element of investing is risk management. Specifically, having a significant stake in the outcome of any investment is the most effective way of aligning the interest of the investment manager and client. We are not just managers, but OKFF investors – we and our families represent approximately 30% of the Fund’s assets and stand shoulder to shoulder with you in both up and down years.
If you have questions about the new fee schedule or regarding the Fund, please don’t hesitate to contact us. We expect that all K-1s and copies of the annual audit will be delivered in March. Thanks again for allowing us to work with you and your families in this important endeavor.
All the best,
Frederick P. Rollins, Jr
Partner
F. William Schwarz, III
Partner
January 1, 2017