The competition for investor capital among traditional managers and private fund managers is increasingly fierce, which has fueled many private fund managers to enter the mutual fund market.  See “Citi Prime Finance Report Describes the Competition among Traditional, Hedge and Private Equity Fund Managers for $1.3 Trillion in Liquid Alternative Assets (Part Two of Two),” Hedge Fund Law Report, Vol. 6, No. 22 (May 30, 2013).  Hedge fund managers that have elected to pursue this strategy have typically done so by creating new, stand-alone alternative mutual funds.  See “How Can Hedge Fund Managers Organize and Operate Alternative Mutual Funds to Access Retail Capital (Part Two of Two),” Hedge Fund Law Report, Vol. 6, No. 6 (Feb. 7, 2013).  However, BTS Asset Management (BTSAM) recently pursued another approach, electing to “convert” the BTS Tactical Fixed Income Fund LLC (Fund) from a hedge fund to a mutual fund.  To understand the rationale for the conversion and the mechanics of effecting it, the Hedge Fund Law Report recently conducted an interview with Isaac Braley and Gary Shilman, CEO and Chief Compliance Officer, respectively, of BTSAM.  Specifically, our interview with Braley and Shilman covered: factors motivating the decision to convert the Fund to a mutual fund; legal and operational mechanics of the conversion; expenses incurred in effecting the conversion; changes in compliance policies, investment strategy and fund governance practices resulting from the conversion; and new challenges relating to the restrictions on transactions with affiliates contained in the Investment Company Act of 1940.  See also “Dechert Partners Aisha Hunt and Richard Horowitz Discuss Strategies and Challenges for Hedge Fund Managers Wishing to Enter the Alternative Mutual Fund Space,” Hedge Fund Law Report, Vol. 6, No. 20 (May 16, 2013).