High-Water Mark
A high-water mark is a benchmark used in fund management to ensure performance fees are only charged on new profits, protecting investors by preventing managers from collecting fees on gains that merely recover past losses.
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Related Terms
View all termsHedge Fund Manager
A hedge fund manager is a professional responsible for overseeing and making investment decisions for a hedge fund, aiming to achieve high returns for investors by utilizing strategies such as leveraging, short selling, and derivatives.
Hedge Funds
A hedge fund is a pooled investment vehicle that utilizes various strategies, including leverage and derivatives, to achieve active returns for its investors, typically accessible only to accredited individuals due to its higher risk and complexity.
Holding Period
The holding period is the duration an investment is held by an investor, from acquisition to sale.
Hurdle Rate
A hurdle rate is the minimum acceptable return on an investment, used by investors to determine whether a project is worth pursuing.
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