Hedge funds aren't as levered up as they were a year ago: now just 1.1 times investment capital,...

|By:, SA News Editor

Hedge funds aren't as levered up as they were a year ago: now just 1.1 times investment capital, vs. a previous 1.27 times. But equity exposure is higher, Merrill Lynch's Hedge Fund Monitor notes - about 58% net long, up from 53% last week and the biggest exposure since 2007. Especially in favor? Small-caps and "low quality" shares.