Partnership Structure

Humbly stated, there are no hidden costs for partners.   In terms that you may be more familiar with, we do not impose any loads on our investment partners.   We want as much capital as possible working at all times.

The management performance structure is based on a hurdle rate of six point three percent (6.3%).   Once the stated hurdle rate is cleared, the partnership's management receives 25% of profits above the hurdle rate for Fund I and 20% of profits above the hurdle rate for Fund II.   This performance structure is based, in part, on the original Warren Buffett partnership agreement for the fairness of this type of arrangement versus a typical mutual fund, money manager, or some hedge funds who collect fees whether the customer's wealth has increased or decreased.

Both funds also has a "high water mark" where the performance fee is only earned if a new high water mark is exceeded after a previous performance allocation has been earned.   Fund I is run as a concentrated portfolio (no more than 25 positions) and Fund II is run as a very concentrated portfolio.

To discourage short-term speculators and market timing, we impose an early exit charge of 2% if a partner redeems their initial capital in less than two (2) years for Fund I.   This early exit fee is retained in the fund for the benefit of all remaining partners, not management.   For Fund II, there is a 25 month lock-up period.

ACI Partnerhsip Fund, LP Structure

  • Advisory Fee:   0.3%   Unlike typical 2.0% for similar funds.
  • Hurdle Rate:   The Fund's Hurdle Rate is above six point three percent (6.3%).
  • Performance Allocation:   25% above the 6.3% Hurdle Only, calculated quarterly.
  • Partner Bonus:   Profit sharing to partner above hurdle is increased to 80% after 3 years.
  • Early Exit:   Within 24 months, 2% withheld & distributed equally to existing Limited Partners.

ACI Partnerhsip Fund II, LP Structure

  • Advisory Fee:   0.7%   Unlike typical 2.0% for similar funds.
  • Hurdle Rate:   The Fund's Hurdle Rate is above six point three percent (6.3%).
  • Performance Allocation:   20% above the 6.3% Hurdle Only, calculated quarterly.
  • Partner Bonus:   Profit sharing to partner above hurdle is increased to 82% after 3 years.
  • Lock-Up:   For the overall beginning lower fee structure, Fund II has a 25 month lock-up period.