Feehan Investment Management: Hedge Fund or Mutual Fund?
(8 pages of text)
Case (Gen Exp)
In 2019, the chief executive officer (CEO) of Boston-based Feehan Investment Management faced a decision. After succeeding her father as CEO, she launched a quantitative research group, or "quant group," which used statistical and mathematical methods to determine investment strategies that were applied to incubate a long/short equity strategy. After incubating the strategy for three years and realizing good returns, the CEO wanted to open up this fund strategy to outside investment; however, she needed to decide on which fund structure to wrap this strategy in—a hedge fund or a mutual fund.
This case is intended for graduate-level courses focused on finance, capital markets, or investment strategies. After completion of the case, students will be able to do the following:
- Describe how hedge fund are structured, and how they differ from other types of funds, including mutual funds and liquid alternatives.
- Identify the US legal constraints that impact hedge funds and the specific US regulatory exemptions that allow for these differences.
- Evaluate the potential conflicts that can arise when an institution simultaneously manages both a mutual fund and a hedge fund.
Finance and Insurance
United States, Small, 2019
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