Bull Path Capital Management, an equity asset management firm based in New York City, announced plans Monday to convert one of its hedge funds into a mutual fund. The SEC has granted the new Bull Path Long Short Fund, which has received a top Lipper Leader rating of 5, to report the hedge fund’s previous performance as the actual past performance of the mutual fund.

The fund is able to do this, explains Portfolio Manager Rob Kaimowitz, because the investment process and portfolio construction has complied with the Investment Company Act of 1940 since its inception in October of 2002.

“The areas that needed to comply were portfolio concentration and position sizing, portfolio exposures, lack of derivatives and lack of leverage,” Kaimowitz says. “Additionally, since inception, the Fund’s investment goals, policies, guidelines and restrictions, are, in all material respects, equivalent to the predecessor partnership.”

The fund focuses on U.S. mid-cap stocks and is available in A- and C-class shares with a $1,000 investment minimum or a $500 minimum with participation in the automatic investment plan.

Thanks to its ability to report the hedge fund’s past performance as its own, the fund will also rank No. 1 of 18 funds in the Lipper Long-Short Fund Universe for totally annualized returns since its 2002 inception through March 31, 2009.