It's strange, but some things in this business seen flaming obvious on the surface, but when you scratch the surface, they are not! My question is about HWM calculations where there are (proportionally large) deposits and withdrawals involved. Does anyone know if there is an industry consensus on how to do this, and what it is? There seems to be two basic approaches to the calculation - 'dollars' or 'percentage' - but as far as I can tell, both raise issues. Simple example: Starting Balance 100,000 Profit 5,000 Perf Fee (20%) -1,000 HWM 104,000 New Deposit 900,000 New Balance 1,004,000 Adjusted HWM ???,??? conversely Starting Balance 1,050,000 Loss -50,000 Perf Fee (20%) 0 HWM 1,050,000 Withdrawal -900,000 New Balance 100,000 Adjusted HWM ???,??? Really appreciate any input.