标题: Hedge fund - leverage [打印本页] 作者: John10 时间: 2011-7-13 14:10 标题: 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!作者: bboo 时间: 2011-7-13 14:10
Pretend you didn't use leverage.
NO EXCUSES作者: strikethree 时间: 2011-7-13 14:11
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
