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HWM

It stands for high water mark; an industry standard that is used to determine payment of performance fees (to a...

High Water Mark

An industry standard that is used to determine payment of performance fees (to a hedge fund's management). It helps limit...

Hedge Fund

A form of open-end investment partnership whose main business is the investment in a range of financial securities, using a...

Feeder

A hedge fund that invests capital mobilized from investors mainly in a specific fund (a central investment vehicle) such as...

Feeder Fund

A hedge fund that invests capital mobilized from investors mainly in a specific fund (a central investment vehicle) such as...

Self-Reporting Bias

A bias (distortion) that results from the decision of a hedge fund whether to report its results (returns or performance)...

Self-Selection Bias

A bias (distortion) that results from the decision of a hedge fund whether to report its results (returns or performance)...

Survivorship Bias

A bias (distortion) that occurs if the database of hedge funds only includes information on surviving funds, i.e., those that continue to...

Stale Price Bias

A bias (distortion) that results from a lack of liquidity and a lack of marking to market value. This bias is caused by...

Forward Market Hedge

A hedge that involves the use of foreign exchange forwards (FX forwards). It consists of an outright purchase of a currency at a forward exchange...