In a white paper supported financially by the Coalition for Responsible Portfolio Management and submitted to the SEC, Lewis argued that alternative mutual funds don't expose investors to undue risk. Rather, he suggested that funds use derivatives and leverage to realize greater portfolio diversification. According to the white paper, the SEC's proposed rule from late 2015 would "significantly impact" alternative mutual funds' use of derivatives, according to Craig Lewis, a finance professor at the Owen Graduate School of Management at Vanderbilt University. The proposal, which would apply to mutual funds, ETFs, closed-end funds and other entities, would limit funds' use of derivatives and require risk management measures designed to better protect investors.
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