# kaal:claim:2715083-032

**Claim.** The Volcker Rule cuts banks off from direct hedge fund investment and thereby pushes them toward accessing hedge fund strategies through retail alternative funds, a shift that could be substantial given banks' prior role as major hedge fund investors.

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

**Holds when.**

- bank holding companies after July 21, 2015
- Dodd-Frank section 619 and related derivatives limits

**Source quote.**

> By limiting banks' investments in derivatives and the hedge funds they sponsor,57 the Dodd-Frank Act limits access to hedge fund investments but incentivizes banks to access hedge fund strategies using a retail alternative fund.

**From.** Kaal, *Confluence of Mutual and Private Funds* (2016), V.3 Retail Alternative Fund Growth, page 18

**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.** systemic-risk

**Keywords.** volcker-rule, bank-investment, retail-alternatives, dodd-frank

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