# Retail alternatives `kaal:entity:retail-alternatives` **Status.** derived This node is assembled mechanically from the 10 claims that carry the concept tag `retail-alternatives`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 10 claims across 2 works, 2016 to 2017. **2016** - [2715083-006](https://wulfkaal.github.io/claims/2715083-006) [definitional/asserted] -- 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. > "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. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-007](https://wulfkaal.github.io/claims/2715083-007) [empirical/evidenced] -- Net assets of mutual funds using alternative strategies quadrupled between 2007 and 2014, a 27 percent annualized growth rate, while the number of such funds rose from 181 to 402. > The author's analysis of ICI data in Exhibit 1 suggests that net assets of mutual funds employing alternative strategies have quadrupled since 2007 (a 27% annualized growth rate). The number of funds offering investors alternative strategies has grown from 181 in 2007 to 402 in 2014 Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-008](https://wulfkaal.github.io/claims/2715083-008) [predictive/evidenced] -- Growth in retail alternatives is expected to continue rather than plateau, with projections that 15.8 percent of all mutual fund assets under management will sit in alternative mutual funds by 2022, making it a multi-trillion dollar industry. > this growth is not expected to slow down, as JP Morgan/Strategic Insight estimate that by 2022, 15.8% of all mutual fund AUM will be tied up in alternative mutual funds, making it a multi-trillion dollar industry Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-018](https://wulfkaal.github.io/claims/2715083-018) [mechanism/argued] -- Alternative funds gave retail investors access to hedge fund strategies and higher returns than traditional mutual funds while charging mutual fund fees, and that combination is what increased retail demand. > Alternative funds offered retail investors access to hedge fund strategies and higher returns than mutual funds while paying mutual fund fees, thus increasing demand by retail investors. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-029](https://wulfkaal.github.io/claims/2715083-029) [mechanism/argued] -- Merging the regulatory requirements of mutual funds with the formerly distinct rules for hedge funds creates incentives for private investment managers to launch retail alternative funds, which raises supply, then demand, and so feeds back into further confluence. > Merging the regulatory requirements applicable to mutual funds with the formerly more distinct rules applicable to hedge funds creates incentives for private investment managers to set up retail alternative funds. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-030](https://wulfkaal.github.io/claims/2715083-030) [mechanism/argued] -- Once a hedge fund adviser is already required to register with the SEC, the marginal regulatory burden of also running a mutual fund or retail alternative fund is small, which gives registered advisers an incentive to enter the registered fund space. > Hedge fund advisers who are required to register with the SEC have incentives to also manage mutual funds or set up retail alternative funds because the regulatory burden is minimally higher in comparison with preregistration legal requirements. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-032](https://wulfkaal.github.io/claims/2715083-032) [mechanism/argued] -- 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. > 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. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-035](https://wulfkaal.github.io/claims/2715083-035) [failure/argued] *(failure mode)* -- Amendments to Regulation SHO may deny mutual fund advisers certain hedging techniques, making it less likely that mutual funds can attract retail investors who are looking for alternative investment exposure. > Investment advisers to mutual funds may not be able to use certain hedging techniques after the amendment of Regulation SHO, making it less likely for investment advisers running mutual funds to attract retail investors who are seeking alternative investment opportunities. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 **2017** - [2998097-035](https://wulfkaal.github.io/claims/2998097-035) [mechanism/argued] -- Merging the regulatory requirements applicable to mutual funds with the formerly distinct rules applicable to private investment funds creates incentives for private investment managers to set up retail alternative funds. > Merging the regulatory requirements applicable to mutual funds with the formerly more distinct rules applicable to private investment funds creates incentives for private investment managers to set up retail alternative funds.188 A higher supply of retail alternative funds, in Wulf A. Kaal, Private Investment Fund Regulation - Theory and Empirical Evidence from 1998 to 2016 (2017). SSRN: https://ssrn.com/abstract=2998097 - [2998097-036](https://wulfkaal.github.io/claims/2998097-036) [mechanism/argued] -- Hedge fund advisers already required to register with the SEC have an incentive to also manage mutual funds or set up retail alternative funds, because the incremental regulatory burden of doing so is only minimally higher than their post registration requirements. > Hedge fund advisers who are required to register with the SEC have incentives to also manage mutual funds or set up retail alternative funds because the regulatory burden is minimally higher in comparison with preregistration legal requirements.191 Some registered hedge fund advisers may choose Wulf A. Kaal, Private Investment Fund Regulation - Theory and Empirical Evidence from 1998 to 2016 (2017). SSRN: https://ssrn.com/abstract=2998097 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/retail-alternatives.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.