Which of the following is the term used to link the hedge fund manager's incentives more closely to those of the fund investors and to reduce the manager's incentive to increase the risk of trades?

Question

Quizplus · Accepted Answer

High-water marks are a performance-based incentive structure that aims to align the interests of hedge fund managers with those of investors by rewarding managers only for gains made over previous high points in fund returns. This reduces the incentive for managers to engage in risky trading behaviors that could jeopardize investors' capital.

Which of the Following Is the Term Used to Link