General Account Structure Overview
All clients have separately managed accounts. As such, client assets are not aggregated and Panthera Capital cannot access client capital. In addition to maintaining control of their funds, clients have total visibility into their portfolio and control over their assets.
- Account access: Clients simply enroll for online account access via our custodian, Interactive Brokers (at no point does Panthera Capital have custody of client funds).
- Allocation: Clients may choose whatever allocation they desire between our three strategies (converts, equity long/short and high yield for a fixed income allocation, as available) or provide Panthera Capital discretion to shift between the strategies based on the opportunities in the market.
- Lock-ups: None. As separately managed accounts, clients may come and go as they please as there are no gates typical of a fund.
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Investment Management Agreements
Please find our investment management agreements by state (including a California resident version and a version for residents of all other states) to the right.
Please note, advisers of Panthera Capital, LLC may only conduct business with residents of the states and/or jurisdictions in which they are officially registered (California and Nevada) or are otherwise exempt. Many states follow a “de minimis standard” whereby out-of-state advisers with less than a specific number of clients in that state are exempt from registration in said state. If you are a resident of a state other than California or Nevada, Panthera Capital will ensure compliance via qualification under the de minimis standard until such time as registration is indicated.
Please note, Panthera Capital’s services are only available to “qualified clients” (as per regulatory guidelines, including a minimum net worth of $2.1mm excluding primary residence or greater than $1mm under Panthera’s management). Panthera Capital requires clients selecting the high-yield or convertibles strategies be “accredited” per regulatory guidelines.
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Performance-Based Fee Schedule
The following is our performance-based fee schedule, which should be reviewed in the context of our complete client Agreement.
Nevada residents benefit from a cap in fees of 3%. An example can be found here.
Performance-based fees are calculated annually based on the performance fee the client selects multiplied by the realized and unrealized profit and loss generated during the calendar year. Our custodian (Interactive Brokers) provides a statement for realized and unrealized gains and losses from which clients may view these results. From this, we would apply the performance-based fee selected in the Agreement to derive the amount earned. We then ensure our returns exceed the appropriate soft hurdle rate (with a soft hurdle rate, managers charge an incentive fee on all profits, but only if the rate of return exceeds a stated benchmark or absolute threshold). These fees are billed annually.
As per the Agreement, management fees are derived based on assets under management per the following formula:
((Mgmt. Fee Rate X Previous Day’s Assets Under Mgmt.) / Number of Trading Days Per Year)
These fees are calculated daily and then added together during the billing period. Fees can either be automatically deducted from the account or billed separately, typically monthly or quarterly.
Please note, for its Position Monetization strategy, Panthera Capital charges a management-fee only (no performance fee). The management fee is determined based on the same AUM brackets noted above in the performance-based fee schedule.
Panthera Capital manages to our strategies rather than providing individualized investment selections. But while Panthera Capital manages assets based on its distinct strategies, we are not a hedge fund. Clients investment objectives are achieved by selecting an allocation to our various strategies. In this way, each individual account receives allocations from trades done in our strategies on a pro-rata basis, in proportion to their assets under management relative to total firm assets under management. This enables our management to focus on investment returns.