On June 30, 2014, Norm Champ, Director of the SEC’s Division of Investment Management, delivered a speech providing an overview of the forces behind the growing alternative mutual fund industry and some concrete steps that hedge fund managers can take to avoid compliance pitfalls when entering that industry.  See “Key Investment and Operational Restrictions Imposed on Alternative Mutual Funds by the Investment Company Act of 1940 (Part Two of Two),” Hedge Fund Law Report, Vol. 7, No. 25 (Jun. 27, 2014).  Specifically, Champ discussed: how alternative mutual fund managers should approach the regulatory issues associated with valuation, liquidity, leverage and disclosure; the role of directors in overseeing compliance programs of alternative mutual funds; ongoing and new initiatives by OCIE targeting alternative mutual funds’ compliance programs; and the utility of IM Guidance Updates in revising compliance programs.  See also “Citi Survey Highlights Opportunities for Hedge Fund Managers as Institutional Investors Seek to Optimize their Portfolios (Part Two of Two),” Hedge Fund Law Report, Vol. 7, No. 23 (Jun. 13, 2014) (in particular, section entitled “The Rise of Alternative Mutual Funds”).