# kaal:claim:2715083-017

**Claim.** Alternative mutual funds generally cannot deliver the same absolute returns as hedge funds, a shortfall some attribute to the lighter touch regulation and better incentives available to hedge funds.

**Type.** failure  **Support.** evidenced

**Holds when.**

- comparison of registered alternative funds with unregistered hedge funds

**Source quote.**

> Alternative funds generally cannot generate the same absolute returns as hedge funds (Hasanhodzic & Lo (2007) and McCarthy (2015)), which is attributed by some to the lighter touch regulation and better incentives applicable to hedge funds.

**From.** Kaal, *Confluence of Mutual and Private Funds* (2016), IV.1 Investor Preferences, page 11

**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

**Failure mode.** Return replication shortfall  (family: investor-protection-gap)

**Topics.** private-funds, risk-and-incentives

**Keywords.** return-replication, alternative-mutual-funds, incentives, regulatory-constraint

**Related claims.**

- supports: https://wulfkaal.github.io/claims/2714974-037
- extended_by: https://wulfkaal.github.io/claims/2811729-027

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