High Water Mark
A requirement that the fund must recoup any prior losses before the investment manager may take a performance (incentive) fee. In addition to performance losses, prior losses may include any combination of fees that the investment manager charges, such as management and administrative fees.
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Hedge Funds & CTAs
Related Terms:
- Standard Deviation Monthly Returns definition
- Equity Hedge definition
- Average Recovery Time ART definition
- Merger Arbitrage definition
- Distressed Securities definition
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