The Next LTCM? $8 Billion Hedge Fund Is Using 10x Leverage

We bring this iconic hedge fund blow up – which was entirely due to far too much leverage – because it appears that we may be returning to the good old days of stratospherically insane hedge fund leverage. Case in point, Michael Gelband’s new hedge – just a few months old – which may not have quite the leverage of LTCM just yet, appears to be giving it the old college try; in fact, as Bloomberg notes, Gelband is already already using more leverage than his former boss, Israel Englander.