Forada, a macro hedge fund that counts ExodusPoint Capital Management among its backers, is expanding its double‑leveraged strategy to a $1 billion asset base. Launched at the start of the year, the vehicle uses two‑times leverage to amplify macro bets, a model that attracted fresh capital as investors chased higher yields in a low‑rate environment while regulators monitor systemic risk closely.

Fund managers argue that leveraged macro funds can deliver outsized returns when interest‑rate moves are volatile, but the strategy also magnifies losses. By sealing the fund to new cash, Forada signals confidence in its risk controls and hopes to lock in investor commitments before market turbulence spikes borrowing costs. The move may pressure peers to reassess their own capacity limits.

With Forada now managing a double‑leveraged book worth a billion dollars, the firm joins a small group of hedge funds willing to double‑down on leverage amid tightening credit conditions. Investors will watch performance closely, as any sharp drawdown could trigger margin calls and force rapid wind‑downs, testing the fund’s liquidity buffers and governance framework for its long‑term stability and reputation.