WebDec 10, 2024 · High-Water Mark: This is the peak in value that an investment fund has reached. This ensures the manager does not get paid for poor performance. If the fund loses money over a period, the manager must get above the high-water mark before receiving future performance fees. WebThe high-water mark clause or ‘loss carryforward’ clause ensures that a hedge fund manager can only charge a performance fee on new profits. As such, if the manager incurs losses, he first has the recover these losses, before he can charge a performance fee.

High Water Mark How to Find High Water Mark with Examples?

WebOct 2, 2013 · So let’s say a hedge fund manager wants to buy 100,000 shares of a company at a price of $10 apiece. However, the manager does not have $10,000 required for purchasing shares, but only can ... WebThe high-water mark clause of a hedge fund states that the fund manager first has to recover losses before he can charge a performance fee on new profits. High-water mark clauses are a common element in the fee … songs like top of my school

The High Water Mark principle explained (performance fee)

Webhigh-water mark noun Synonyms of high-water mark : highest point : peak Synonyms acme apex apogee capstone climax crescendo crest crown culmination head height high noon … WebApr 17, 2024 · A high-water mark is the maximum value at which an investment fund or account can culminate. A high-water mark is typically used to benchmark performance of … WebMar 27, 2024 · A high-water mark represents the highest peak that investments have reached in value. The high-water mark in hedge funds shows the peak value that the funds achieve since their initial establishment. Hedge funds use the high-water mark as a measure for incentives for fund managers. However, it can also work as a protection for investors. songs like wet by dazey and the scouts