A High Water Mark Is a Limiting Factor of Hedge

question 21

Multiple Choice

A high water mark is a limiting factor of hedge fund manager compensation. This means that managers cannot charge incentive fees ________.

• A)when a fund stays flat
• B)when a fund falls and does not recover to its previous high value
• C)when a fund falls by 10% or more
• D)None of the above occurs. Managers can always charge incentive fees.

Analyze the effects of material and anticipatory breaches on contractual obligations.

Discern between different standards (subjective, objective) for contract satisfaction and their legal implications.

Recognize the role of mutual agreement (accord and satisfaction, novation, mutual rescission) in modifying or discharging contracts.

Identify various types of legal and equitable damages and remedies available in contract law.