# kaal:claim:2714974-002

**Claim.** Qualifying for one of the Investment Company Act statutory exclusions, fewer than 100 investors or exclusively qualified purchasers, is what permits a hedge fund to use investment techniques such as shorting that are forbidden to registered investment companies.

**Type.** condition  **Support.** asserted

**Holds when.**

- requires fewer than 100 investors or only qualified purchasers
- applies under the Investment Company Act of 1940

**Source quote.**

> A hedge fund that qualifies for one of these statutory exclusions may use investment techniques that are forbidden to the registered investment companies.

**From.** Kaal and Oesterle, *The History of Hedge Fund Regulation in the United States* (2016), THE INITIAL U.S. REGULATORY FRAMEWORK, page 6

**Cite as.** Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974

**Verify.** sha256 of source PDF `7764601d3ed5bb056b58949e8411eff9dfb9855f143719062030c980c5fa801b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Oesterle%20-%202016%20-%20The%20History%20of%20Hedge%20Fund%20Regulation%20in%20the%20United%20States.pdf

**Topics.** institutional-design

**Keywords.** investment-company-act, regulatory-exemption, short-selling, qualified-purchasers

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