While new leverage rules proposed by the SEC may force some liquid alternatives to retool their investment approach or convert to private funds, there remains a steady flow of voluntary conversions in the opposite direction. Long/short equity is the original “hedged fund” strategy, as pioneered by Alfred W. Jones in the late 1940s, and it’s a strategy that’s well-suited to the modern regulatory environment of ’40 Act mutual funds. Thus, with mainstream investors increasingly looking to diversify their exposures through alternatives, and alternative asset managers continually looking to diversify their client base by expanding into the retail market, it’s no...