Archive · 6 Dec 2025

Hedge Funds Use Near-Record Leverage to Boost Returns

Hedge Funds Use Near-Record Leverage to Boost Returns

Hedge funds are using a lot of borrowed money, called leverage, to make bigger bets in the stock market.

This helps them make more money when the market goes up.

But it also means they could lose more if the market goes down.

Right now, they're using almost the highest amount of leverage ever, and some people are worried about what could happen if the market changes suddenly.

Even though there are some concerns, many experts think these funds are good at managing risks, and so far, their bets have paid off.

The stock market has been doing well, with big gains this year.

Sources