Hedge Funds

FSA survey: hedge funds increase leverage, improve portfolio liquidity


Hedge funds were using more leverage in April 2010 than in October 2009 reflecting an increase in risk appetite, according to a recent study by the Financial Services Authority, the results of which have just been released.

The regulator surveyed about 50 investment managers in April, which together managed around 90 hedge funds totalling almost $345 billion under management. The majority of featured managers were also included in its October 2009 study.

The FSA asked managers about their funds footprint as a multiple of investor equity, and found that the overall footprint in April was 399%, compared to 328%