The Leverage of Hedge Funds

Posted: 16 Dec 2009

See all articles by Sheridan Titman

Sheridan Titman

University of Texas at Austin - Department of Finance; National Bureau of Economic Research (NBER)

Date Written: December 13, 2009

Abstract

[enter Abstract Body]Long-short hedge funds are often very highly levered, despite the costs of leverage that became apparent during the LTCM crisis in 1998 and the more recent episode in 2008. This note explores potential market imperfections that may explain the use of leverage.

Keywords: Hedge Funds, Leverage

Suggested Citation

Titman, Sheridan, The Leverage of Hedge Funds (December 13, 2009). Available at SSRN: https://ssrn.com/abstract=1522885

Sheridan Titman (Contact Author)

University of Texas at Austin - Department of Finance ( email )

Red McCombs School of Business
Austin, TX 78712
United States
512-232-2787 (Phone)
512-471-5073 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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