What is a high-water mark?
A high-water mark is the highest value an account has reached since inception or since the last time a performance fee was paid, if applicable. If your account were to lose money, it must first recover to a performance level above its previous highwater mark in which a performance fee was paid before the performance fees can be assessed again. In other words, your account is protected against being charged fees when the performance of the account falls below the highest previous level. An account that falls below the high-water mark cannot be assessed performance fees until the net value of the account rises above the previous level.
