# kaal:claim:2715083-038

**Claim.** Rising demand for alternative strategies creates incentives for mutual fund managers to find ways to simulate leverage, in an industry that historically used little leverage and presented little risk.

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

**Holds when.**

- mutual fund industry facing sustained retail demand for alternative strategies

**Source quote.**

> while mutual funds have historically used little leverage (or leverage-creating derivatives) and presented little risk, the increasing demand for alternative strategies (Kaal & Anderson 2016) creates incentives for mutual fund managers to seek ways to simulate leverage.

**From.** Kaal, *Confluence of Mutual and Private Funds* (2016), VI. Conclusion, page 20

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

**Keywords.** leverage, derivatives, mutual-funds, risk-taking, incentives

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