Table 12.1 summarizes some descriptive statistics for certain hedgefund strategies, and a general overview of the leverage is examined in this chapter.

Obviously, the leverage used by hedge funds that had failed is completely diff erent. For the period of June 2007-August 2008, the asset-weighted leverage of large fi xed-income hedge-fund failures was 16 times (ratio of asset to equity capital) (IMF, 2008). Lowenstein (2001) affi rmed that LTCM registered the “fantastic fi gure” of a 100-1 leverage. In general, it is not correct to conclude that hedge funds failed only because of the excess use of leverage (see Christory et al., 2007).