Hedge Funds in general have recently been increasing leverage to boost their returns. But how does that compare to their historical use of leverage?
As always, context matters. We shared some data on the growth of more levered strategies including Equity Quant and Multi-Strategy funds with Thomson Reuters, which shows that since 2014, as they have become more popular among investors – their growth in assets has well outpaced the industry. Today, Multi-Strategy and quantitative strategies more broadly comprise roughly 32% of hedge fund assets versus only 24% in 2014.
More details in the link below.
https://www.reuters.com/markets/us/hedge-flow-hedge-funds-ramp-up-leverage-near-record-highs-juice-returns-2024-03-12/#:~:text=NEW%20YORK%2C%20March%2012%20(Reuters,client%20notes%20from%20major%20banks
