His smaller leveraged fund was one of the best-performing hedge funds in 2012.
And in 1998, Russia's default led to the near-collapse of Long-Term Capital Management, a hugely leveraged hedge fund, and caused huge losses for other leveraged investors.
Acconci Trust claims in its complaint that in 2004 it purchased on the secondary market a 31.24% stake in Lincolnshire Equity Fund, a leveraged buyout investment fund set up by Lincolnshire Management in or around 1994.
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This volatility is more like a leveraged stock fund rather than a bond fund.
Leveraged Company Stock Fund has an impressive five-year annual average return of 35%.
This ugly reality hit home for me recently, when I had to talk an immediate relative through a situation in which he was suckered into a leveraged Oppenheimer bond fund that contained derivatives and lost money.
It's a similar dynamic to what is happening with Wall Street banks that committed to fund leveraged buyouts, only to have trouble selling those loans in the syndicated loan market--they have to hold them on balance sheet until the credit markets come back to life.
To make money, his fund has leveraged itself and is now 120% invested in gold equities, essentially in gold miners.
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An investor with a loan out against half his holdings in a hedge fund that itself is already leveraged 100% internally faces a cash crunch he may have never imagined if his fund's value drops by any significant degree.
But Huffington claims it was only after making the investment commitment that he was told the fund would be leveraged.
In many cases, the funds run by famous hedge fund managers are leveraged up the hilt, and have relatively inconsequential trading costs.
The fund was highly leveraged to a sector that is routinely highly volatile, and there appeared to be a breakdown of risk monitoring within the firm that allowed its position to grow as large as it did.
Sorkin interviewed Doug Kass, of Seabreeze Partners Management and other hedge fund managers about leveraged ETFs, and the supposed volatility they have caused in recent weeks and months, especially towards the end of the trading day.
It was this kind of violent and sudden volatility that caused the highly leveraged Long-Term Capital Management fund to require a bailout by Wall Street institutions in the fall of 1998.
Hedge-fund promoters promise to be leveraged, to be hedged, to be "market neutral, " to be short, to be long.
Hedge fund promoters promise to be leveraged, to be hedged, to be "market neutral, " to be short, to be long.
Many bonds in the BlackRock fund are the by-product of leveraged buyouts.
The 0.95% expense ratio may be reduced by interest income earned on cash and financial instruments since the fund will get its desired exposure with leveraged swaps while maintaining a large cash position.
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If we can't place some of the leveraged loans on the market, we may have to fund them, and the question is at what price.
Back then, 14 Wall Street firms had to rescue the fund to contain the damage of unwinding its hugely leveraged positions.
This summer no big storms materialised and the same sort of positions highly leveraged and insufficiently hedged, analysts say left the fund exposed to falling prices.
Instead, he used the team as an ATM to earn high returns from a dubious fund manager and his cable channel to pay himself a leveraged dividend.
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Figures from Barclays Trading Group of Fairfield, Iowa, show that 16% of equity-based hedge funds, designed to be relatively conservative, are leveraged at 100% or more of their asset values, meaning the fund has a dollar or more of debt for every dollar in assets.
Some of these leveraged ETFs were introduced in November 2008, including the Direxion 3X Daily Bull Fund (NYSE: FAS) and Direxion 3X Daily Bear Fund (NYSE: FAZ), and these funds could not have had the assets under management to really affect market moves to the extent we were seeing in late 2008, and 2009.
Other inverse leveraged options include the ProShares UltraShort Financials ETF (NYSE: SKF), which is leveraged two-to-one, rather than three-to-one like the Direxion fund.
Among domestic equity ETFs (excluding short and leveraged offerings), the Guggenheim Spin-Off ETF ( CSD) , a somewhat obscure fund that specializes in this sort of thing, ranks 34th (out of 300) in terms of one-year price performance.
Mr Corzine's background is in trading (Mr Paulson's is in investment banking) and he was closely identified with losses from highly leveraged bets similar to those that led to the collapse last September of Long-Term Capital Management, a hedge fund.
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