WebA high-water mark is the highest level of value reached by an investment account or portfolio. Let’s take a simple example: Assume the investor places $500,000 into a fund, … WebIt refers to the frequency with which hedge fund update the high-water mark and charge the performance fee. While this payment frequency is often assumed to be annual, some …

High-Water Mark vs. Hurdle Rate: What

WebAug 19, 2010 · Designing a high water mark that best fits a hedge fund involves consideration of numerous factors, including fund liquidity, the nature of the investor base, the correlation between the fund's ... WebHigh water marks. The highest NAV of a fund to date is known as the "high water mark". If the NAV of a fund declines during a year, no performance fee will be payable to the … in your dreams sleigh boy

What is Equalisation? - Mainstream Group

WebApr 5, 2004 · high-water mark compensation is due to the fact that hedge fund technology may have diminishing returns to scale. Most hedge fund managers are engaged in some fo rm of “arbitrage in expectations ... WebHedge fund NAV 01/01/07 1,100,000. The concept of the high watermark is theoretically similar to the “claw-back” provision found in many private equity funds in that its purpose … 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 … 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 $500,000 into the fund, and, during its first … 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 … 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 … See more on sale boys shoes