Hedge Funds Boost Leverage and Assets in FCA Survey
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The hedge fund industry boosted its use of debt to maximize profits, increasing gross leverage to 67 times net asset value in a survey by the U.K. markets regulator from 64 times a year earlier.
The 10 biggest hedge funds in the study accounted for about two-thirds of gross leverage, the Financial Conduct Authority said. The survey covered $418.6 billion of assets managed by 52 firms as of September 2014, up from $375 billion in March 2014. The total includes $265 billion managed out of the U.K.