Element Forces Some Client Redemptions in $3B Downsizing

Element Capital, led by Jeffrey Talpin, is a prominent global macro hedge fund that once managed $18 billion. Due to significant losses in recent years, the fund is reducing its size to become more agile. The fund's management fee was unusually high, doubling to 40% in 2019. This, combined with poor performance, has led to investor dissatisfaction and forced redemptions. Some investors are withdrawing funds without the chance to recover losses, as lock-up periods have been lifted.

What is the current status of investors in Element Capital's fund according to the text?

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What does the term 'high water mark' refer to in the context of hedge funds?

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