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New Reasons to Fear Leverage

A study shows hedge funds are nearing pre-crisis leverage levels with a lot less faith in what the markets might do.

Steven Cohen’s SAC Capital Advisors has nearly $51 billion in leverage—more than 3.5 times its current assets of $14 billion. Even so, no one expects a lasting market crisis if at some point Cohen has to unwind the firm, which the U.S. government has accused of insider trading. Markets might

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