"I remember reading something in Jack Schwager's Trading Wizards book where someone talked about successful hedge funds not using more than 5-10x leverage."
Leverage doesn't mean much if you don't know the beta (a measure of risk) of the security. I think for most hedge funds the amount of leverage varies wildly based on what's being traded, so it's tough to apply a single rule of thumb to an entire market.
Leverage doesn't mean much if you don't know the beta (a measure of risk) of the security. I think for most hedge funds the amount of leverage varies wildly based on what's being traded, so it's tough to apply a single rule of thumb to an entire market.