Five Stone Capital, LLC

Five Stone Capital, LLC acts as general partner and investment adviser to Five Stone Capital Fund, L.P., a pooled investment vehicle, and also provides portfolio management services to a wrap-fee program. Investors in the Fund invest under offering materials and subscription documents and are generally subject to investor qualification standards (examples in the offering materials include a $2.2 million net worth test or at least $1,000,000 invested) and a signed limited partnership agreement.

The firm manages the Fund on a discretionary basis and uses fundamental analysis for stock selection, seeking to limit single-stock exposure and to hold securities with lower correlation to the broader market. Execution practices include use of a prime brokerage, aggregation and block trades, and the firm maintains a Code of Ethics and personal-trading procedures to mitigate conflicts when associated persons trade securities also held by the Fund.

Five Stone’s profile is notable for its role as a private fund adviser with a performance-based incentive allocation—an annual 20% allocation payable when current-year profits exceed unrecouped prior losses and calculated to include unrealized gains—an arrangement that is uncommon among supported peers. The firm operates with relatively modest assets under management (roughly $9–10 million), provides audited financial statements and K-1s to investors, and permits quarterly withdrawals from the Fund with 30 days’ written notice.