This is the loss carried forward. That is, if you made £1000 the first year and a £1000 the next year, then you lose £1000 in the third and forth year, you are not really even. Rather the GP must make back your initial £2000 gain before he can take out the performance fee.

The assurance that a fund only takes fees on profits unique to an individual investment. For example, a $1,000,000 investment is made in year 1 and the fund declines by 50%, leaving $500,000 in the fund. In year 2, the fund returns 100%, bring the investment value back to $1,000,000. If a fund has a high water mark, it will not take incentive fees on the return in year 2, since the investment has never grown. The fund will only take incentive fees if the investment grows above the initial level of $1,000,000.

Line or mark left upon tidal flats, beach, or along shore objects indicating the elevation or the intrusion of high water.

The high point that an investment fund has reached. This term is often used in the context of fund manager's performance fee. Because the income of an investment manager may be performance based, a high water mark means if the manager loses money over one time period they must reach the high water mark before getting a performance fee on new gains. For example, a $100,000 investment in a fund that falls to $90,000 after one year. The manager would not be entitled to a performance fee until after surpassing the high water mark or highest point of value of the investment – which in this case is $100,000.

The high point of value that an investment fund/account has reached. This term is often used in the context of fund manager compensation. Because the income of an investment manager is performance based, a high water mark means that if money is lost over one time period, they have to get back to the high water mark before getting a performance bonus on new appreciation.

Physical evidence of past flooding such as discoloration of the lower portions of vegetation or debris suspended in branches off of the ground.

A high water mark policy is one which permits the raising of security levels for the purpose of accessing higher level information. In most cases, the original level is restored after the process is complete. Currently, the FreeBSD MAC framework does not have a policy for this, but the definition is included for completeness.

Expressed in number of records and associated with Spatial Data Option partitioned table structure, it defines the maximum number of records to store in a table before decomposing another level. The high water mark determines the maximum size of a partition within the Spatial Data Option table.

A line or mark left upon water level flats, beach, or alongshore objects indicating the elevation of the intrusion of high water. The mark may be a line of oil or scum on alongshore objects, or a more or less continuous deposit of fine shell or debris on the foreshore or berm. This mark is physical evidence of the general height reached by wave runup at recent high waters.

High Water Mark is a loss carried forward. That is, if you make a $100 the first year and a $100 the second year, then lose $100 in the third and forth year, you are not really even. Rather the General Partner must make back your initial $200 gain before becoming eligible again for a performance fee.

This is the highest level water reaches during a flood event. The HWM has significance for communities and for FEMA officials as they analyze the effects of flooding and make projections for future events.

A common approach to the calculation of incentive fees. It means that incentive fees are paid only on net new rises in asset value. If a temporary decline occurs, it must be recouped before new incentive fees are paid.

The highest recorded level of water in any body of water.

A distinct mark made on vegetation, buildings or rocks that shows the extent of water rise.