High-Water Mark

High-Water Mark
The highest peak in value that an investment fund/account has reached. This term is often used in the context of fund manager compensation, which is performance based.

The high-water mark ensures that the manager does not get paid large sums for poor performance. So if the manager loses money over a period, he or she must get the fund above the high watermark before receiving a performance bonus. For example, say after reaching its peak a fund loses $100,000 in year one, and then makes $250,000 in year two. The manager therefore not only reached the high-water mark but exceeded it by $150,000 ($250,000 - $100,000), which is the amount on which the manager gets paid the bonus.


Investment dictionary. . 2012.

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  • High-water mark — High High, a. [Compar. {Higher}; superl. {Highest}.] [OE. high, hegh, hey, heh, AS. he[ a]h, h?h; akin to OS. h?h, OFries. hag, hach, D. hoog, OHG. h?h, G. hoch, Icel. h?r, Sw. h[ o]g, Dan. h[ o]i, Goth. hauhs, and to Icel. haugr mound, G. h[… …   The Collaborative International Dictionary of English

  • High water mark — may refer to:*Ordinary high water mark, the highest level reached by a body of water that has been maintained for a sufficient period of time to leave evidence on the landscape *High water mark of the Confederacy, the deepest penetration by the… …   Wikipedia

  • high water mark — n [singular] 1.) the mark that shows the highest level that the sea or a river reaches 2.) the time when someone or something is most successful high water mark of ▪ the high water mark of Herrera s presidency …   Dictionary of contemporary English

  • high-water mark — [hī′wôt′ər] n. 1. the highest level reached by a body of water in tidal flow, flood, etc. 2. the mark left after high water has receded 3. a culminating point; highest point …   English World dictionary

  • high water mark — high water ,mark noun singular a mark that shows the highest level that the sea, a river, or a lake has risen to …   Usage of the words and phrases in modern English

  • high-water mark — ► NOUN ▪ the level reached by the sea at high tide, or by a lake or river in time of flood …   English terms dictionary

  • high-water mark — noun a line marking the highest level reached • Hypernyms: ↑water line, ↑watermark * * * noun, pl ⋯ marks [count] 1 : the time when something is most active, successful, etc. : ↑peak It was the high water mark of her career …   Useful english dictionary

  • high-water mark — also high water mark 1) N SING: the N The high water mark is the level reached in a particular place by the sea at high tide or by a river in flood. 2) N SING: with supp, oft N of/for n The high water mark of a process is its highest or most… …   English dictionary

  • high water mark — Tidemark Tide mark, n. 1. a mark on a shore line indicating the normal level of the water at high tide, caused by the action of the flowing water; sometimes also used for the mark left at the point of the normal low tide; called also {high water… …   The Collaborative International Dictionary of English

  • high water mark — Tidemark Tide mark, n. 1. a mark on a shore line indicating the normal level of the water at high tide, caused by the action of the flowing water; sometimes also used for the mark left at the point of the normal low tide; called also {high water… …   The Collaborative International Dictionary of English

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