The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees is known as a

Question

Quizplus · Accepted Answer

The high water mark is the value of a portfolio that must be reattained before a hedge fund can charge incentive fees again. This ensures that the manager is only earning additional compensation when the portfolio is generating new gains beyond previous highs, rather than simply recovering losses. None of the other options are relevant to this concept.

The Previous Value of a Portfolio That Must Be Reattained