WEST PALM BEACH, FL (www.hedgeco.net) – A record number of new hedge funds were created during the first half of 2005, according to Busnesswire reports. Despite the global slowdown in hedge fund returns during the first half of 2005, there was a 13 percent increase in the number of new hedge fund launches compared to the number launched in the first half of 2004.
The Cayman Islands continue to attract significant number of hedge fund firms. According to published reports, about 80 percent of the global hedge funds are registered with the Cayman Islands Monetary Authority. During the first half of 2005, the number of Cayman Island’s registered hedge fund operators rose from 5,932 to 6,527.
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.”
Lewis added, “As money managers and investors, particularly those in emerging markets such as Asia, continue to have assets to invest and a need for strong returns, it’s certain that the growth in the Cayman’s hedge fund industry will continue. With more than 795 new hedge funds established in the Cayman Islands through the end of June, it’s position as the leading offshore investment fund’s jurisdiction is well established.”
Another manager, ” Jonathan Tonge, a partner at Walkers also said, “We credit the growth to more global activity, increased allocation of assets to hedge funds from pension funds, a significant increase in the perception of large corporations, and institutional investors of Cayman’s position as a strong financial jurisdiction.” Adding, “At Walkers, we’ve seen continued business from current clients as well as new business garnered from referrals, and our strong track record of success.”
by Paul Oranika
Source: HedgeCo.Net