As hedge fund managers adapt to changes in the marketplace, they are employing special fund vehicles, such as pledge funds, activist funds and alternative mutual funds, in order to take advantage of special opportunities.  During the recent Seward & Kissel Private Funds Forum, panelists discussed these and other hedge fund industry trends with respect to fund structuring and capital raising.  This article, the second of a two-part series, explores how hedge fund managers are employing such fund structures and strategies.  The first article highlighted current trends in seeding arrangements and fee terms, and examined the impact of ERISA and tax considerations on hedge fund structuring.  For additional insight from the firm, 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); and “Private Investment Funds Investing in CLO Equity and CLO Warehouse Facilities,” Hedge Fund Law Report, Vol. 7, No. 18 (May 8, 2014).