Ann: Quarterly Report for the 3 months ended 31 October 2020, page-10

I generally try to avoid paying performance fees to fund managers for market-related returns that aren't dependent upon their skill e.g The fee taken by Tribeca on their listed TGF global resources vehicle for any returns essentially above zero (once high watermark is exceeded) as the NTA may rise and fall with the market, regardless of what they do, so it is usually essential to have a performance fee hurdle that is representative of the market they are investing in, so the fund managers only get paid for outperforming.
So I was initially worried about the absolute 8% hurdle on the performance fee which LSX has (still much better than TGF at essentially zero) but I got some answers on this from LSX management recently which put my mind at ease.
The Lion Manager base fee is levied on everything except the other Lion Fund holdings which they would already get fees from (African Lion, which are very small holdings in LSX nowadays). With regard to the performance fee, it looks like the hurdle / high watermark for this to be levied again is a market capitalization of circa $130M which would translate to a share price of circa $0.88. So any accruals would appear to be some way off, and therefore, apart from needing to be cognisant of the concentration of their portfolio in Indonesia, I'm now more comfortable with the idea of using LSX as another way of playing any uplift in the value of early stage commodity businesses.