The High Water Mark Is the Highest Value That a Fund Has Ever Reached

The high water mark is the highest value that a fund has ever reached. So this almost gives the incentive for funds to close when we're in a market like this. If a fund was 200 million dollars, and now it's 50 million dollars after the crash, the fund needs to return 300 % before the g ps can collect any profits. However, if they just close the fund, re start with the 50 million and then profit 30 million dollars, they made that same, that same return. The other incentive that can be at a whack is the level of wrisk taking that that is there once you understand that you need to really blow it out of the water to then make some

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