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

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.