Seeking to access a vast source of capital that is not readily accessible by traditional hedge funds, hedge fund managers have been launching or contemplating the launch of alternative mutual funds.  Aside from the opportunity to expand the manager’s investor base, launching an alternative mutual fund allows a hedge fund manager to expand and diversify its product offering.  In the U.S., such funds are governed by the Investment Company Act of 1940 and, as such, must meet a broad array of regulatory and compliance requirements.  See “The First Steps to Take When Joining the Rush to Offer Registered Liquid Alternative Funds,” Hedge Fund Law Report, Vol. 7, No. 42 (Nov. 6, 2014).  For a general discussion of ways that hedge fund managers can enter the retail alternatives space, 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).  Speakers at FRA LLC’s Private Investment Funds Compliance Master Class – including Marie Noble, partner, general counsel and CCO at SkyBridge Capital; and Robert Schwartz, general counsel and CCO at Loeb King Capital Management – discussed issues to consider when converting a hedge fund strategy to a mutual fund structure, due diligence of mutual fund service providers, alternative mutual fund compliance and marketing.  This article highlights the key points discussed on each of the foregoing topics.  For additional coverage of this conference, see “Five Steps That CCOs Can Take to Avoid Supervisory Liability, and Other Hedge Fund Manager CCO Best Practices,” Hedge Fund Law Report, Vol. 8, No. 12 (Mar. 27, 2015).  For a discussion of another kind of conversion, see “Legal Mechanics of Converting a Hedge Fund Manager to a Family Office,” Hedge Fund Law Report, Vol. 4, No. 43 (Dec. 1, 2011).