Hedge Funds in Cayman and the BVI

The last three years have seen extreme volatility in the global equity markets. Despite this volatility – or perhaps because of it – the offshore hedge fund industry continues to thrive. As investment managers have adjusted their strategies away from the traditional long/short model, they have found a willing pool of investors looking to diversify bruised portfolios with alternative investments.

The jurisdiction at the centre of this activity is the Cayman Islands. To date, 4,580 mutual funds have registered in the Cayman Islands, an increase of over 50% since 2000. Eurekahedge’s directory of Asia and Japan Hedge Funds currently lists 253 funds that are domiciled offshore, of which 172 (68%) are domiciled in Cayman.