Bridgewater on Leverage

I can't evaluate all of the arguments made in this article, but one thing thing caught my eye:

Zink also points out that, by investing in equities, institutions are investing in leverage, as all companies are leveraged, which is why returns are high.

No evaluation of the leverage of a portfolio (say of a hedge fund) is complete without an evaluation of the leverage contained within the positions of that portfolio. Managers frequently advertise their low portfolio leverage without also disclosing the average leverage of the companies whose stocks comprise the portfolio.

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