A high-water mark is the highest peak in value that an investment fund or account has reached. This term is often used in the context of fund manager compensation, which is performance-based. The high-water mark ensures the manager does not get paid large sums for poor performance. If the manager loses … See more A high-water mark ensures that investors do not have to pay performance fees for poor performance, but, more importantly, guarantees that investors do not pay performance-based fees twice for the same amount of … See more For example, assume an investor is invested in a hedge fund that charges a 20% performance fee, which is quite typical in the industry. Assume the investor places … See more Several things can happen when an investor enters a fund during a period of under-performance. For instance, at Goldman Sachs Asset Management, an investor who buys into the fund at a net asset value(NAV) … See more The high-water mark prevents this "double fee" from occurring. With a high-water mark in place, all gains from $460,000 to $575,000 are disregarded, but gains above the high-water mark are subject to the performance-based … See more WebHigh water mark. Also found in: Financial, Acronyms, Idioms, Wikipedia . HIGH WATER MARK. That part of the shore of the sea to which the waves ordinarily reach when he tide …
High water mark financial definition of High water mark
WebHigh-water mark definition, a mark showing the highest level reached by a body of water. See more. WebSep 18, 2024 · High-water marks provide valuable data for understanding recent and historical flood events. The proper collection and recording of high-water mark data from … t shirt business startup checklist
A USGS guide for finding and interpreting high-water marks
WebA high water mark is a point that represents the maximum rise of a body of water over land. Such a mark is often the result of a flood, but high water marks may reflect an all-time high, an annual high (highest level to which water rose that year) or the high point for some other division of time. WebMar 15, 2024 · A high-water mark is the minimum level that a fund manager needs to achieve to receive a performance bonus. The high-water mark clause protects investors … 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 … philosophical experience examples