Switzerland’s Cayman Connection

Paul Scrivener, partner with Cayman law firm, Solomon Harris, explores the interaction between the two jurisdictions when it comes to funds of hedge funds

Switzerland is a particularly interesting jurisdiction when it comes to the alternative investments industry. In 2007 the Swiss Federal Banking Commission (SFBC) issued a report on hedge funds which revealed that approximately 5 per cent of all assets invested in Switzerland are invested in hedge funds. Other statistics show that some US$200 billion is invested through Switzerland into funds of hedge funds (FOHFs) representing around one third of total global assets invested in FOHFs. Only the United States is larger in terms of investment into this segment of the alternative investments industry.