Frequently Asked Questions

Please feel free to call us if you have any aditional questions.

Q: Why choose a Registered Investment Advisors?
A: Not all money management firms elect to be registered when starting out. But credibility and transparency are very important to SPCM. By being registered, SPCM must comply with the regulatory requirements such as compliance, trading, and financial reporting. A hedge fund which is not required to be registered can essentially invest in just about anything it wants. This freedom makes it that much harder for the average investor to understand and monitor hedge funds.

Q: What happens to the custody of my account?
A: SPCM uses BNY Mellon as our custodian. We do not have legal custody of our clients’ accounts. We operate pursuant to an investment advisory contract that provides us with the limited power to trade our clients’ accounts, receive duplicate statements, invoice client accounts for our fees, and make cash distributions directly to our clients at their request. SPCM’s clients may call the custodian and confirm their assets are where they should be, in their name!

Q: Are their termination penalties?
A: There are no barriers to exit a relationship with Sutton Place Capital Management. The relationship is terminable on written notice at any time. There are no termination fees, redemption fees or other charges.

Q: How are you compensated?
A: We charge a management fee based upon a percentage of the value of the assets we manage. The fee is an annual percentage fee, and is billed quarterly by taking the value of the managed assets at the beginning of each calendar quarter and applying one-fourth of that annual percentage fee. We do not receive commissions on transactions and we accept no other forms of compensation from investment product providers or financial institutions.

Q: How transparent is the firm?
A: SPCM is horizontally integrated, that is we work with well established third party firms to perform the major support functions of money management. SPCM’s broker is BNY Capital Markets which mails trade confirms and monthly statements to clients. Account performance is provided quarterly calculated by Advent software. A hedge fund provides an annual prospectus typically with the top ten holdings only; this is not very transparent.