What Is the "High Water Mark" for a Hedge Fund

question 23

Multiple Choice

What is the "high water mark" for a hedge fund manager to receive the portion of their fee based on performance?

• A) The percentage by which the fund outperforms the Dow Jones Industrial Average.
• B) The highest previous value of the fund.
• C) The percentage ranking versus other fund managers that a hedge fund manager must achieve.
• D) The legal limit that a fund manager can charge for a performance based fee.
• E) The percentage return of the fund in the previous year.

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Definitions:

Long-Term Memory

The aspect of memory where information is stored for an extended period, ranging from hours to a lifetime.

Messages

In biological systems, messages refer to the information transmitted between cells or organisms, often in the form of chemical signals or nerve impulses.

Acetylcholinesterase

Acetylcholinesterase is an enzyme that breaks down the neurotransmitter acetylcholine in the synaptic cleft, terminating neural transmission.

Acetylcholine

A neurotransmitter involved in many functions including muscle activation, memory, and the modulation of the parasympathetic nervous system.