strategies that display high leverage use in dissolved funds but low leverage use in live funds. 46.15% of dedicated short bias in dissolved funds used leverage whereas only 16.67% are using leverage in live funds. Options strategy as well, used relatively high leverage (46.65%) in dissolved funds, yet only 9.09% are using leverage in live funds. However, since the Live category does not contain enough number of dedicated short bias and options strategy, it is hard to conclude that two strategies have inconsistent weight of leverage. Table 1 Summary statistics of leverage use across various hedge fund strategies Graveyard 2016 Funds Leveraged Funds Unleveraged Convertible Arbitrage 195 69 (73.9%) (26.1%) Dedicated Short Bias 24 28 (46.2%) (53.8%) Emerging Markets 516 334 (60.7%) (39.3%) Equity Market Neutral 356 259 (57.9%) (42.1%) Event Driven 365 333 (52.3%) (47.7%) Fixed Income Arbitrage 262 144 (64.5%) (35.5%) Fund of Funds 1830 3243 (36.1%) (63.9%) Global Macro 584 256 (69.5%) (30.5%) Long/Short Equity Hedge 1922 1356 (58.6%) (41.4%) Managed Futures 638 296 (68.3%) (31.7%) Multi-Strategy 867 727 (54.4%) (45.6%) Options Strategy 21 25 (45.7%) (54.3%) SUM 7580 7070 (51.7%) (48.3%) Live 2016 Funds Leveraged Funds Unleveraged Convertible Arbitrage 34 7 (82.9%) (17.1%) Dedicated Short Bias 1 5 (16.7%) (83.3%) Emerging Markets 118 118 (50.0%) (50.0%) Equity Market Neutral 70 55 (56.0%) (44.0%) Event Driven 89 79 (52.0%) (47.0%) Fixed Income Arbitrage 77 41 (65.3%) (34.7%) Fund of Funds 634 1056 (37.5%) (62.5%) Global Macro 154 101 (60.4%) (39.6%)
strategies that display high leverage use in dissolved funds but low leverage use in live funds. 46.15% of dedicated short bias in dissolved funds used leverage whereas only 16.67% are using leverage in live funds. Options strategy as well, used relatively high leverage (46.65%) in dissolved funds, yet only 9.09% are using leverage in live funds. However, since the Live category does not contain enough number of dedicated short bias and options strategy, it is hard to conclude that two strategies have inconsistent weight of leverage. Table 1 Summary statistics of leverage use across various hedge fund strategies Graveyard 2016 Funds Leveraged Funds Unleveraged Convertible Arbitrage 195 (73.9%) 69 (26.1%) Dedicated Short Bias 24 (46.2%) 28 (53.8%) Emerging Markets 516 (60.7%) 334 (39.3%) Equity Market Neutral 356 (57.9%) 259 (42.1%) Event Driven 365 (52.3%) 333 (47.7%) Fixed Income Arbitrage 262 (64.5%) 144 (35.5%) Fund of Funds 1830 (36.1%) 3243 (63.9%) Global Macro 584 (69.5%) 256 (30.5%) Long/Short Equity Hedge 1922 (58.6%) 1356 (41.4%) Managed Futures 638 (68.3%) 296 (31.7%) Multi-Strategy 867 (54.4%) 727 (45.6%) Options Strategy 21 (45.7%) 25 (54.3%) SUM 7580 (51.7%) 7070 (48.3%) Live 2016 Funds Leveraged Funds Unleveraged Convertible Arbitrage 34 (82.9%) 7 (17.1%) Dedicated Short Bias 1 (16.7%) 5 (83.3%) Emerging Markets 118 (50.0%) 118 (50.0%) Equity Market Neutral 70 (56.0%) 55 (44.0%) Event Driven 89 (52.0%) 79 (47.0%) Fixed Income Arbitrage 77 (65.3%) 41 (34.7%) Fund of Funds 634 (37.5%) 1056 (62.5%) Global Macro 154 (60.4%) 101 (39.6%)
The_Impact_of_Leverage_on_Hedge_Fund_Performance_(Wansoo_Choi).docx