The Leverage of Hedge Funds
Posted: 16 Dec 2009
Date Written: December 13, 2009
[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
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