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When a hedge fund loses a billion dollars, the underlying assets have lost a billion dollars regardless of the leverage. Maybe it's you who needs an example.
Let's say I put in $20k on a $200k house (10x leverage) and house loses $5k in value. Have I lost 10x $5k? No. I've lost $5k - same as the house lost.
Leveraging in any fund simply multiplies potential risks and potential returns - you get to see this only when you talk percentages - not actual dollars. So if the house goes up 5%, my investment of $20k goes up 10x 5%.
I understand leverage. I understand it very well. Despite your very kind offer, I have no need of a classroom thanks.
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