Federated Investors is breathing new life into an old investment fund by transforming it into a mutual fund.

In December, the Pittsburgh-based company created the Federated Capital Appreciation Fund with the $100 million in assets from the Federated Exchange Fund, formed in 1976.

The name of the original fund, created as a California limited partnership, stemmed from its unusual structure. Investors swapped individual stock holdings for mutual fund shares of equivalent value. It was eventually closed to new investors.

The new fund, which invests primarily in medium-sized companies, is open to institutional and retail purchasers.

It inherits the four-star Morningstar performance record of its predecessor through an accounting ruling from the Securities and Exchange Commission.

Federated Investors administers $85 billion of mutual fund assets, three-quarters of which it also manages.

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