hedge fund, what is a hedge fund, start a hedge fund, hedge fund research
hedge fund, what is a hedge fund, start a hedge fund, hedge fund research

Myth #1: All Hedge Funds Are

Highly Leveraged

A recent IMF study reports that best estimates place the number of funds using
leverage in the range of 50 percent to 70 percent. In addition, they report that
an estimated 85 percent of hedge funds have a leverage ratio of two or less.8
However, in instances where leverage is high (like LTCM), enhanced market discipline
might be the answer. This could be encouraged, for example, through of hedge funds. It is notable that the use of leverage, in and of itself, does not imply excessive risk-taking by hedge funds. After all, bank trading desks that compete with hedge funds in many markets employ much more leverage than the average leveraged hedge fund.
- posted by Mark Pane @ 6:11 PM