HoH model stands for High-on-High model, which means:
For job applicants, they have to pass the Evaluation that is structured based on HoH model in order to become ATSR.
For the ATSR who chooses to be compensated by Profit Sharing, the ATSR Fee can only be charged if the Excess Gain is large enough so that the current NAV exceeds the HWM.
We have a specific policy in place for determining when a ATSR Fee can be charged. This fee is only applicable when the Excess Gain on a MSA exceeds a certain threshold. Specifically, the current NAV must be higher than the HWM that was recorded after the last Settlement. This ensures that the fee is only charged when the investment has truly performed above and beyond expectations. It is important to note that the HWM is a benchmark that is set after each settlement period, and the NAV is constantly monitored and updated to ensure accuracy. This system is in place to ensure fairness and transparency for all parties involved.
Excess Gain as a percentage of ATH must be larger than the MDD as a percentage of ATH in the context of WBUF where RRR is larger than 1.
In this randomly simulated P&L equity curve chart, in order for RRR to be larger than one (1), the green Excess Gain percentage of the ATH must be larger than the orange MDD percentage of the ATH.