Developmental Case Study of Hedge Fund Clone Program as Knowledge Creation Means : Action Research Using Soft Systems Methodology and Social Learning

This study aims to fill the purpose of empirically indicating an example of the general development process of an investment strategy that accompanies knowledge creation within an organization. The task here is to deal with a complex system of the financial markets, while creating expert knowledge in an organization. In order to research this, we carried out the hedge fund clone program under development as action research. For dealing with complex features of the task we have used soft systems methodology. Next, we focused on the SECI model to create professional knowledge within the financial market. In developing the clone program, we studied preliminary research and conducted interview research towards hedge funds. For the construction method, we selected the process analysis approach, and chose the Diversified Trend Follow Strategy which is the representative investment strategy of the CTA (Commodity Trading Advisor) as the subject to making the clone. As a result, the development and management of clone programs can improve the process of professional knowledge being acquired. The developmental process itself highly accelerates the cyclical interaction between implicit knowledge and explicit knowledge in the SECI model, and therefore provides high speed knowledge creation within an organization