Hedge fund : Hedge fund winter

Most hedge funds will look back on 2007 with satisfaction at having so far navigated the credit crunch. But next year could be much tougher. The key challenge will be to secure financing on competitive - or any - terms. With banks facing much higher funding costs themselves, as well as multiple demands for their scarce capital, that is not going to be as easy as it has been in the past. Most hedge funds use borrowed money to juice up their returns. The average leverage across the industry is ju...