Douglas Capital Management, LLC

Aggressive Trading Account

The aggressive trading account uses an incentive-based fee.  It is open only to qualified investors.  The fees are calculated as follows:

20% of Positive Marked-to-Market P&L applied on a quarterly basis as of 3/31, 6/30, 9/30, and 12/31. DCM will look back over the last four calendar quarters and only calculate a fee based on the positive P L for the year up to a maximum of the amount specified for the quarter.

As an example, for 20% of Market-to-Market P L, DCM made $50,000 in P L for a client over the last quarter, but only $30,000 over the last four quarters, the client will be charged $30,000*20% or $6000 for the quarter.

P L is determined by subtracting the beginning of period equity from the end of period equity, and removing all cash items such as deposits, withdrawals, and fees for the period. Fees will be calculated and posted by the 10^th business day after the end of a quarter. Section 5 of the Aggressive Trading Advisory Agreement provides a detailed example for how fees are calculated and assessed.

Focused Trading Account

The focused trading account is open to all investors. Fees for a focused trading account are calculated as a percentage of assets in the account under management as follows:

2% per year of Net Liquidation Value applied on a daily basis for accounts with Interactive Brokers.

Dynamic Asset Allocation Accounts and Tax Efficient Accounts

Dynamic asset allocation account and Tax efficient accounts are open to all investors. Fees for these account are calculated as a function of the account size and a percentage of the Net Liquidation Value (NLV) as follows:

Account Size           Fee as % of NLV

Less than 100K              1.0%

100K to 250K                0.9%

250K to 500K                0.8%

500K to 1M                   0.7% 

1M to 3M                      0.6%

More than 3M                0.5%             

The annual fee as a percentage of Net Liquidation Value is applied on a daily basis for accounts with Interactive Brokers.

Complimentary Services:

DCM offers the following services free-of-charge to clients who request them.

An initial portfolio review.

Periodic portfolio reviews.

Suggestions for structuring investments for maximum tax efficiency.

Help in organizing and consolidating investment accounts.

Help in developing a personal asset allocation strategy.