High-water mark

Hi,

May I ask what the new high-water mark amount be after a copier/follower partially remove funds in the middle of the month?

For example:

Copier A allocated 100 to the Strategy Provider.

First month, copier A made a 20% gain. Now his equity is 120. The Strategy Provider charges a 10% performance fee. So the remaining equity is 118. The high-water mark is 120.

Second month, copier A made a lost of 10%. Now his equity is 106. The high-water mark is 120.

In the middle of third month, copier A removed 40 from his allocated equity to copy the Strategy Provider. Now the equity is 66.

May I know is the current high-water mark 120 - 40 = 80 or is the current high-water mark equals to the current equity which is 66.

Thanks.