Hedge funds around the world are significantly increasing their leverage levels, approaching record highs in an effort to enhance their returns. Leverage, which refers to the use of borrowed funds to amplify investment potential, has become a popular strategy among hedge funds seeking to maximize profits.
By leveraging their investments, hedge funds are able to magnify gains when their trades are successful. However, this strategy also comes with increased risks, as losses can be equally amplified in the event of market downturns or unfavorable outcomes.
