WEST PALM BEACH, FL (www.hedgeco.net) – The Cayman Islands hedge fund industry attracted significant number of hedge funds in 2004. According to the report over 1,100 new hedge funds were created inthe Cayman Islands in 2004, such growth represents over 100 percent increase in the previous reporting period. Part of the growth resulted from a surge of interest from Asian hedge fund investors,according to analysis from the Global law firm of Walkers.
The report also show that over 80 percent of the global hedge fund industry now call Cayman Islands home, by registering their funds through the Cayman Islands Monetary Authority. The Cayman Islands hedge fund sector benefited in 2004 from the surging interest from the Asian institutional investors, many of whom are interested in US debt and equity markets. Such activities are traded through many of the funds domiciled in the Cayman Islands.
The growth of hedge fund management business in Cayman Islands increased by near 150 percent in 2004, such growth also benefited the asset inflows to the United States by about fifty percent. Mark Lewis, a partner at Walkers and joint head of the firm’s investment funds team said, “Today, hedge funds are global, and are an essential element in a myriad of investment strategies.” Lewis added, “Hedge funds are essential to the liquidity of the global capital markets, a need that is only going to increase with the march to the greater globalization of the marketplace. It is clear that savvy market professionals and institutional investors recognize the enormous advantages the Cayman Islands offer when it comes to domiciling hedge funds and other investment vehicles.”
It is anticipated that as the Asian hedge fund industry continues to grow, such growth will also impact on the Cayman Islands hedge fund industry as well. The Asian hedge fund industry has grown from about �162 funds managing $13.8 billion in 1999 to more than 500 funds managing in excess of $59 billion at the end of 2004�, according to published reports.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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