10 Strategies Hedge Funds Use to Make Huge Returns

1. Leverage or Borrowed Money

This is one of the most popular among the 10 strategies hedge funds use to make huge returns. It follows the tactics of buying more assets by using the borrowed funds, with the confidence of getting more money from the assets than the borrowed amount. The risk of losses is so high that a hedge fund with a huge borrowed amount may often face default or bankruptcy through a business downturn, though a less-levered fund may survive.