Hedge Fund Reader : Cayman Islands Monetary Authority laughing its way to the bank on ever increasing surge on hedge funds registrations

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August 26, 2005

Cayman Islands Monetary Authority laughing its way to the bank on ever increasing surge on hedge funds registrations

There has been a major hype created about hedge funds around the world. Creating a cut throat competition to dole out better performance to its investors. Although there are reports indicating that hedge fund assets are shrinking and rates of growth curve seen flatting out. Money managers and investors, have rest their hopes on emerging markets such as Asia which has seen such a stupendous growth in the recent past. But despite the global slowdown in hedge fund returns during the first half of 2005, there was a 13 per cent increase in their number compared with in the first half of 2004. And the global hot favorite location with 80 per cent of all registered hedge funds is Cayman Islands Monetary Authority. The number of such registered hedge fund rose from 5,932 to 6,527 in the first half of 2005. With more than 795 new hedge funds registered in the Cayman Islands till end of June this year. HedgeCo.Net Reports:

While some hedge fund industry trackers continue to publish reports indicating that hedge fund assets are shrinking, the growth data from the Cayman Islands suggest that these reports may have been exaggerated. Mark Lewis, a partner at Walkers and joint head of the firm's investment team, told Bussinesswire, "It is clear that fund managers are under pressure to deliver results for their investors, but hedge funds are still an increasingly common part of most investment strategies."