Hedge fund

Oxford dictionary calls a Hedge fund an "offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital."

That neglects to mention how much they charge, or that they talk a lot about alpha -= even leveraged alpha - but do a lot of vega.

Now be assured, leveraged alpha is technically possible, but --- yeah.

What most people claim to be leveraged alpha is, usually, really plain old vega - that is, just leverage. If your market benchmark is beating the borrowing rate, you will make money by borrowing.

If someone pitches "leveraged alpha" product to you, they are most likely a charlatan - which you would expect, it being the financial markets and all - and a mediocre manager. Especially if they use back-testing to demonstrate their historical alpha.