Frequently asked questions

As of October 2018, Cable Car Capital LLC no longer accepts new separately managed account clients. Cable Car manages a private investment partnership, The Funicular Fund, LP, which is available only to accredited investors. The FAQ below presently describe the old separate accounts structure. New FAQ are forthcoming.

Please click on the title of each question to expand the answer.

Jump to an FAQ category below

About Cable Car Capital LLC


Fees and expenses

Individual investors

Institutional allocators

Managed accounts


Fees and expenses

What fees does Cable Car charge?

For US investors who are not qualified clients, Cable Car charges a flat annual management fee equal to 3% of the account value, billed daily in arrears by the custodian.

For non-US investors and qualified clients, Cable Car waives the management fee and charges a 30% incentive fee, computed quarterly by the custodian on the net profit and loss in the account and subject to a high water mark of previous performance.

Please see Item 5 in the firm’s brochure on Form ADV for more information.

Management fee Incentive fee
Non-Qualified 3% None
Qualified None 30%

What is a qualified client?

By law, Cable Car may only charge performance-based (“incentive”) fees to non-US investors and US investors who are qualified clients. The SEC has established a net worth threshold of $2 million (excluding primary residence) or $1 million under management with an adviser before the adviser may charge performance-based fees. A higher minimum may apply to pension accounts.

Are Cable Car’s fees negotiable?

Yes, for non-discretionary mandates and large, long-term capital commitments.

What other costs are associated with Cable Car’s investment program?

Clients incur brokerage and other investment expenses in addition to Cable Car’s fees. Clients pay trade commissions, which represent a pass-through of exchange fees, clearing fees, and transaction fees plus brokerage commissions that do not include research-related markups. Client assets are not utilized for research costs; Cable Car bears all research-related expenses directly.

In addition to brokerage costs, clients may incur custody fees, broker interest, minimum activity fees, order cancellation fees, and other costs related to operating and maintaining an investment account. These commissions and fees are charged or passed through by the custodian and not by Cable Car.

How do Cable Car’s fees compare to alternatives?

Cable Car is not the lowest-cost provider of investment advice, and lower fees for similar services may be available elsewhere.

The firm’s fees are generally higher than those offered by index funds, long-only mutual funds, and long-only managed accounts. They are generally comparable to or lower than fees for actively managed “alternative investments” such as long/short mutual funds, long/short managed accounts, and hedge funds. Unlike many mutual funds, Cable Car does not charge sales loads or marketing and distribution (12b-1) fees. Cable Car also does not use client assets to pay for research. The practice of inflating brokerage commissions to pay for research is common in the industry, can lead to conflicts of interest, and adds to client expenses without transparency. Cable Car’s fees are used to support its full-time research efforts, and all research expenses are paid directly by the firm.