# kaal:claim:2715083-016

**Claim.** Freedom from significant regulatory oversight is what historically enabled hedge funds to run more exotic, more leveraged strategies aimed at absolute returns.

**Type.** mechanism  **Support.** argued

**Holds when.**

- hedge funds operating under securities law safe harbors before the Dodd-Frank Act

**Source quote.**

> Without significant regulatory oversight, hedge funds were able to employ more exotic investment strategies involving more leverage to generate absolute returns for their investors.

**From.** Kaal, *Confluence of Mutual and Private Funds* (2016), IV.2 Regulation, page 13

**Cite as.** Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083

**Verify.** sha256 of source PDF `b5c92186260d4a8499a14f81ee24ace093b24e7740af3effcd1c526fa4fa221e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202016%20-%20Confluence%20of%20Mutual%20and%20Private%20Funds.pdf

**Topics.** regulatory-failure, private-funds

**Keywords.** regulatory-arbitrage, leverage, absolute-returns, hedge-funds

**Related claims.**

- restates: https://wulfkaal.github.io/claims/2150377-001

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.