Hedge Fund Leverage

  title={Hedge Fund Leverage},
  author={Andrew Ang and Sergiy Gorovyy and Greg van Inwegen},
  journal={Banking \& Financial Institutions eJournal},
We investigate the leverage of hedge funds in the time series and cross section. Hedge fund leverage is counter-cyclical to the leverage of listed financial intermediaries and decreases prior to the start of the financial crisis in mid-2007. Hedge fund leverage is lowest in early 2009 when the market leverage of investment banks is highest. Changes in hedge fund leverage tend to be more predictable by economy-wide factors than by fund-specific characteristics. In particular, decreases in… 
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  • I. Welch
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  • 2004
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