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What happens if a follower of a strategy stops following a strategy due to losses in that strategy but restarts following the same strategy later in a few weeks / months? What happens to the high-water mark here?

For strategies that are stopped restarted, the previous watermark is preserved. This means that after the restart you only pay a performance fee again when the previous watermark has been reached.

If it is a new strategy, then there is a new high watermark as well. There is nothing relating the old strategy and the new one.

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