The UK Financial Conduct Authority's (FCA) 2015 Hedge Fund Survey has found the sector remains "highly concentrated" in terms of assets under management, strategies, the use of leverage, number of open positions and counterparty risk.
The funds in the survey obtain leverage primarily through derivatives positions, with interest rate derivatives a particular source of synthetic leverage.
The mean fund in the survey is 27 times synthetically leveraged in relation to its net asset value (NAV). One
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