In the context of evaluating performance of a particular hedge fund for the purpose of determining incentive fees, which of the following best defines high-water mark?O The highest overall net asset value (NAV)O The highest NAV recorded on an incentive fee computation dateO The highest NAV prior to distribution of the fund's first incentive feeO The highest NAV prior to the fund's lowest NAV

A high water mark is used to decide the performance / incentive fees paid to the fund managers. It…

Answered: In the context of evaluating…

In the context of evaluating performance of a particular hedge fund for the purpose of determining incentive fees, which of the following best defines high-water mark?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the context of evaluating performance of a particular hedge fund for the purpose of determining incentive fees, which of the following best defines high-water mark?
O The highest overall net asset value (NAV)
O The highest NAV recorded on an incentive fee computation date
O The highest NAV prior to distribution of the fund's first incentive fee
O The highest NAV prior to the fund's lowest NAV

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