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Hedge fund - leverage

Could some please advise what it meant by deleveraging or looking through the leverage - Per P. 34 in Book 4 of Schweser, "the convention for dealing with leverage is to treat an asset as if it were fully paid for (looking through the leverage). When derivatives are included, the same principle of deleveraging is applied".

Many thanks!

Pretend you didn't use leverage.

NO EXCUSES

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Essentially, in evaluating hedge funds, you ignore leverage -- cos most hedge funds follow an absolute return strategy, which is maximizing return, without attempting to minimize risk

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