Cayman Fund Registrations Increase

Oct 19 2010 | 1:43am ET

While the stalled European Union hedge fund regulations have led some firms to leave the Cayman Islands and redomicile in Europe, the world's largest offshore hedge fund jurisdiction is doing just fine.

The Caribbean country said that monthly new fund formations have increased 5% since last year, with an average of 105 funds opening every month. At the same time, terminations have fallen by 40%—only 45 per month.

"These numbers continue to show the attraction of a transparent jurisdiction which is free of intrusive regulation with respect to investment strategy," Anthony Travers, chairman of Cayman Finance, said. "These statistics are in line with our earlier predictions and I would anticipate terminations will decline further as smaller funds wind down and fund managers make decisions about the high water-mark."

Travers also took the opportunity to shoot down speculation that the Caymans were through as a hedge fund domicile due to the EU rules.

"Interestingly, on the subject of migration, and given all the commentary from experts about redomicilation, according to CIMA figures there have been only four—two to Malta, two to Luxembourg and none to Dublin," he said. "We remain assured that on the global stage Cayman's attraction continues to improve."

By contrast, Travers said, the attraction of Europe is faltering.

"We predict that trading talent will continue to migrate out of the EU," he said.

All told, there are now 9,623 funds registered in the Caymans, less than 600 funds shy of the all-time high of 10,200 hit in 2008.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note