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 "name": "Investment company act",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2714974-002",
   "identifier": "kaal:claim:2714974-002",
   "text": "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.",
   "abstract": "A hedge fund that qualifies for one of these statutory exclusions may use investment techniques that are forbidden to the registered investment companies.",
   "citation": "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",
   "datePublished": "2016",
   "claim_type": "condition",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [
    "requires fewer than 100 investors or only qualified purchasers",
    "applies under the Investment Company Act of 1940"
   ],
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2714974-036",
   "identifier": "kaal:claim:2714974-036",
   "text": "The combined restrictions on registered investment company short selling, leverage, and organizational structure create a substantial disincentive for such companies to pursue absolute return strategies that are independent of the aggregate value of the market.",
   "abstract": "The restrictions on investment company short selling, leverage, and organizational structure create a substantial disincentive for such companies to engage in so-called absolute return investment strategies, which are strategies that are independent of the aggregate value of the market.",
   "citation": "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",
   "datePublished": "2016",
   "claim_type": "mechanism",
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   "@id": "https://wulfkaal.github.io/claims/2715083-006",
   "identifier": "kaal:claim:2715083-006",
   "text": "The author stipulates that retail alternative funds are funds regulated under the Investment Company Act that attempt to replicate private fund strategies, including leverage, derivatives, short selling, and nontraditional asset classes; this definition carries the chapter's confluence analysis.",
   "abstract": "\"retail alternatives funds\" are defined as regulated funds under the investment company act that attempt to replicate the strategies of the private fund industry - including use of leverage, derivatives, short- selling and purchase of nontraditional asset classes.",
   "citation": "Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083",
   "datePublished": "2016",
   "claim_type": "definitional",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [
    "as used throughout this chapter",
    "covers liquid alternatives, unconstrained funds, alternative mutual funds, and synthetic hedge funds"
   ],
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2811729-001",
   "identifier": "kaal:claim:2811729-001",
   "text": "The proliferation of unconstrained mutual funds calls into question whether the retail investor protections built into the Investment Company Act of 1940 remain effective.",
   "abstract": "The proliferation of unconstrained mutual funds calls into question the effectiveness of retail investor protections under the Investment Company Act of 1940.",
   "citation": "Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729",
   "datePublished": "2016",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "U.S. registered open-end investment companies",
    "unconstrained credit strategies sold to retail investors"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2811729-013",
   "identifier": "kaal:claim:2811729-013",
   "text": "Because unconstrained mutual funds comply with the Company Act, they may be marketed and sold to all classes of retail investors, including those with limited or even no experience investing in securities.",
   "abstract": "Compliance with the Company Act means that UMFs may be marketed and sold to all classes of retail investors, including retail investors who have limited, or even no, experience investing in securities.",
   "citation": "Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729",
   "datePublished": "2016",
   "claim_type": "condition",
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   "@id": "https://wulfkaal.github.io/claims/2811729-036",
   "identifier": "kaal:claim:2811729-036",
   "text": "The Company Act's retail investor protection policies do not take sufficiently into account the investment strategy and risk attributes that unconstrained mutual funds share with private funds.",
   "abstract": "Company Act's retail investor protection policies do not take these risks sufficiently into account.",
   "citation": "Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729",
   "datePublished": "2016",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
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   "@id": "https://wulfkaal.github.io/claims/2811729-040",
   "identifier": "kaal:claim:2811729-040",
   "text": "The absence of any current requirement to present unconstrained portfolio risks in detail raises the question whether unconstrained mutual fund prospectuses provide the adequate, accurate, and explicit information required by Section 1(b)(1) of the Company Act.",
   "abstract": "seems to raise the question of whether UMF prospectuses at present provide \"adequate, accurate, and explicit information, fairly presented, concerning the character of [mutual fund] securities,\" as required by Section 1(b)(1) of the Company Act.",
   "citation": "Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729",
   "datePublished": "2016",
   "claim_type": "failure",
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   "is_failure_mode": true,
   "scope_conditions": [
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2998097-038",
   "identifier": "kaal:claim:2998097-038",
   "text": "The proliferation of unconstrained mutual funds calls into question the effectiveness of retail investor protections under the Investment Companies Act of 1940, because shares in funds that carry private fund strategies and risks may be bought by retail investors with limited or no investment experience.",
   "abstract": "However, unlike private funds, which are generally limited to investors who satisfy particular investment sophistication and net worth requirements, shares of UMFs may be purchased by retail investors, including those with quite limited or even no investment experience.",
   "citation": "Wulf A. Kaal, Private Investment Fund Regulation - Theory and Empirical Evidence from 1998 to 2016 (2017). SSRN: https://ssrn.com/abstract=2998097",
   "datePublished": "2017",
   "claim_type": "failure",
   "confidence": "argued",
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    "United States"
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 "description": "8 claims in the published works of Wulf A. Kaal carry the concept tag 'investment-company-act'. Derived node: a roster, not an adjudicated definition."
}