Risk Management Tool for Hedge Fund Leverage

As a portfolio manager evaluating an investment in a hedge fund, you are concerned about the risks associated with the fund's strategies. The hedge fund employs leverage to increase its exposure in certain market segments, which may lead to amplified returns but also greater risk. To manage this risk effectively, you need to identify the best risk management tool available that can help mitigate potential losses arising from adverse market movements.

Which of the following risk management tools would be most appropriate for mitigating the risks associated with the hedge fund's use of leverage?