Cayman Islands Hedge Fund Guide | Hedge Funds in the Cayman Islands

Cayman Islands Hedge Fund Guide

Hedge Funds in the Cayman Islands

(http://HedgeFundBlogger.com) Here is a short collection of articles on the hedge fund industry in the Cayman Islands. I am always looking for more valuable online tools and resources to add to these geographical hedge fund guides. If you have a white paper or PowerPoint that I can include here please send me an email and I will post it for everyone's benefit.

• The number of hedge funds registered with the Cayman Islands Monetary Authority (CIMA) has increased by approximately 23% over those registered in the first quarter of 2004. More than 80 per cent of the world’s 13,000-plus hedge funds are registered with CIMA.

• Great, in depth overview to hedge funds in the Cayman Islands.

• According to a number of reports, one of the Cayman Islands’ leading financial products, hedge funds, are not as lucrative as many have presumed, but their popularity remains at an all time high. Noted for the sometimes exotic nature of their investments, hedge funds actually performed worse last year than the much more conservative Standard & Poor’s 500 Index.

• Information about the Fourth Annual Cayman Islands Open Your Heart to the Children Benefit, an event by the Hedge Fund Care organization.

• Turmoil caused by the US financial meltdown will likely effect Cayman’s hedge fund industry. Leader of Government Business Kurt Tibbetts acknowledged at the Cabinet press briefing Friday that Cayman’s economy “does not operate in isolation and that we are not immune from the global volatility and uncertainty”.

• On Feb. 27, the world's hedge funds, through their manipulation and miscalculation of the yen carry-trade, led to a violent unwinding of that carry-trade, which triggered disintegration of the world financial structure. But hedge funds had already bled the major international commercial banks and corporations into absolute bankruptcy. And where are those hedge funds? The Cayman Islands.

• A few days ago, the Cayman Islands Monetary Authority published their "Investments Statistical Digest", which is a summary of the "e-reports" that all Cayman hedge funds now have to submit to the local regulator. The statistics cover 5,052 Cayman domiciled hedge funds which filed as of December 31, 2006. This represents 81% of the funds which were due to publish their annual returns as of that date.

• Great bulletin that includes a piece about hedge funds in the Cayman Islands and their use of Chapter 15 of the Bankruptcy Code.

• When it comes to hedge funds, the Cayman Islands are a true heavyweight in the offshore world. Paul Scrivener, joint head of the investment funds group at Solomon Harris explains why and outlines what a hedge fund manager can expect when setting up his offshore fund here.

• The number of hedge funds registered in the Cayman Islands exceeded 10,000 in June for the first time, another indication that the hedge fund industry continues to grow despite market turmoil, Cayman authorities said on Monday. At the end of June, there were 10,037 hedge funds and fund-of-hedge-funds registered in the offshore tax haven, up from 9,413 at the end of 2007.

• The Cayman Islands have become the leading offshore jurisdiction in the funds industry and are currently home to more than 6,500 registered open-ended funds and many unregulated closed-ended or exempted funds. The majority of such registered funds are hedge funds intended for experienced investors and it has recently been reported that an estimated 80 per cent of the world’s hedge funds are registered in the Cayman Islands.

• Recent second quarter figures from the Cayman Islands Monetary Authority (CIMA), have confirmed the achievement of a key milestone by the Cayman Islands financial services industry, with more than 10,000 investment funds currently registered in the jurisdiction.

• Great document regarding the regulation of hedge funds in the Cayman Islands.

• More than 1,100 new hedge funds were created in the Cayman Islands in 2004, marking a 100 percent increase over the previous reporting period. For the first time, a surge in hedge fund interest from Asian investors was demonstrated, according to a new analysis by Walkers, the global offshore law firm of choice for companies, financial organizations, and international law firms.

• There has been a great deal of debate in the US and England recently as to whether hedge funds should be subject to increased regulation. From a Cayman Islands perspective, the success of the domicile in attracting hedge funds1 and the limited number of failures bears testimony to the effectiveness of the current regulatory system.

• Late In 2007, the Cayman Islands' hedge fund industry celebrated a milestone: the registration of the 10,000th fund to be authorized by the Cayman Islands Monetary Authority. But the celebration may have been premature, since as of Feb. 1, hedge funds physically located in the United States have had to be registered with the Securities and Exchange Commission, regardless of where the actual fund is domiciled.

• Hedge funds, already dodging calls for more oversight, now have a new nemesis: British tax cops. In a clear sign that United Kingdom tax authorities are keen to crack down on the tax practices of high-rolling hedge funds, GLG Partners Services Ltd., a Cayman Islands entity that distributes hedge funds run by GLG Partners LP, has settled a probe by British tax officials, people familiar with the situation said.

• The world’s most popular hedge fund domicile continues to grow this year, but one prominent hedge fund manager does not expect it to last. The number of hedge funds registered in the Cayman Islands rose 6.6% in the first half, with 624 funds and funds of hedge funds registering in the tax haven since the end of December.

• William Grayson, the president of EGM Capital, a hedge fund firm in San Francisco, has never set foot on the Cayman Islands, but he knows that sun-baked Caribbean haven quite well. That is because he set up one of his funds in the Caymans, where lucrative tax breaks and fabled financial secrecy have made this British territory a magnet for hedge fund managers.

• The Cayman Islands is successfully positioning itself as the hub for hedge funds, with the number of domiciled on the offshore financial center rising to 7,106 in 2005, a 32% rise from 2003.

• Great overview, in depth analysis of everything related to the Cayman Island hedge fund market.
  

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