HWM correction for a year with very high return
Hi everyone, I was just going through the CAIA L-1 chapters on Hedge Funds(I am applying for it in Feb this year). In the HF part, it is mentioned, that the NAV is set to HWM of a HF at the end of each year. My question is that if a fund manager makes remarkable return under extraordinary sets of conditions(making big money due to foreseeing market failure) and if those conditions can't be realistically present every year, is the HWF still set that high for the next year? Or is there a correction/cap on the amount the HWF can be pragmatically set?
Dolor et dolore est vitae voluptatum quisquam. Similique facere nisi non rerum. Cum dolor praesentium aliquam distinctio.
Ex quo est unde eos et laboriosam omnis. Provident et autem ut nesciunt sint. Odio voluptatem molestiae corporis eius fuga aut minus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...