Last year was a record year for hedge fund registrations in the Cayman Islands and all the signs suggest that 2007 will be another year of strong growth for the hedge fund industry. A recent industry commentary from Credit Suisse Index predicts that hedge funds will continue to attract a healthy level of capital across all markets. The commentary notes that hedge funds have the ability to produce attractive risk-adjusted returns across a range of asset classes over a long- and short-term investment horizon, independent of broad market trends.
This article is the third in a series on Cayman Islands hedge funds that I have written for Legal Week. In an earlier article which appeared in Legal Week 16 March, 2006, I summarised certain proposed amendments to the Mutual Funds Law of the Cayman Islands and noted that, in addition to those amendments, the Cayman Islands Monetary Authority (CIMA) was also proposing to introduce new information systems to allow for electronic filings. As the amendments to the mutual funds law have now been enacted and the electronic filing system is about to be implemented, it seems timely to provide an update on the Cayman Islands regulatory regime for hedge funds.
