Hedge funds are returning to the practice of leveraging, with some levels as high as 50%, Reuters reports. Nonetheless, risk-taking, even by hedge funds, is not expected to return to pre-crisis levels.

Multi-strategy and hedge-funds-of-funds in particular are assuming leveraging, aided by prime brokers willing to extend credit, said Henry Bregstein, an attorney with Katten Muchin Rosenman who was attending the GAIM hedge fund industry conference in Monaco.

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