Hedge Fund High Water Market Definition

Below please find a definition of “Hedge Fund High Water Market”

Financial Analysis Training & Glossary TermsHedge Fund High Water Market: A provision serving to ensure that a fund manager only collects incentive fees on the highest net asset value previously attained at the end of any prior fiscal year — or gains representing actual profits for each investor. For example, if the value of an investor’s contribution falls to, say, $750,000 from $1 million during the first year, and then rises to $1.25 million during the second year, the manager would only collect incentive fees from that investor on the $250,000 that represented actual profits in year-two.

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on http://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  Hedge Fund High Water Mark, Fund High Water Mark, Fund High Water Mark, Performance High Water Mark, Typical High Water Market Levels, What is a high water mark?

About Richard Wilson