geared equity
[/ɡɪrd ˈɛkwɪti/]
nounpl: geared equities
patrimônio alavancado
1. Equity in a company or investment that has been amplified through the use of leverage (borrowed capital), increasing both potential returns and risks for shareholders
The fund's geared equity strategy aims to maximize returns by using borrowed money to increase exposure to equities.
A estratégia de patrimônio alavancado do fundo visa maximizar retornos usando dinheiro emprestado para aumentar a exposição a ações.
2. Ownership interest in a leveraged company or investment vehicle where debt is used to finance asset acquisition
Investors in geared equity funds should understand the increased volatility that comes with leverage.
Investidores em fundos de patrimônio alavancado devem compreender a volatilidade aumentada que acompanha a alavancagem.
Geared equity is primarily a technical term used in financial markets and investment communities in both Brazil and the United States. It reflects modern portfolio management strategies and is commonly discussed in investment banking, hedge funds, and institutional investing. In Brazil, this concept has grown more prominent with market liberalization and increased sophistication of investment vehicles.
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