Riding the market recovery

With global financial markets in the doldrums for the past two years, some investors turned cautious, while others simply panicked. Those who made wise choices and followed a strategy weathered the storm.

2010 status of nanotechnology investing:

Premier news publications featured abundant and broad-reaching headlines about nanotechnology, including ‘Nanotechnology Provides New Approach to Drug Discovery’; ‘Magnetic Fields Created Using Nanotechnology Could Make Computers up to 500 Times Faster’; and ‘Nanotechnology Holds a Key to US Alternative Energy Goals’.

Comparing qif’s and sif’s to Cayman Funds: Managing the myth

To answer this question, it is necessary to have a brief look first at the features of QIFs and SIFs to try to identify what, if any, advantages they offer over Cayman funds; and secondly to consider the expected treatment of QIFs, SIFs and Cayman funds under the AIFM Directive. This inevitably involves some crystal ball-gazing as, at the time of writing, the EU legislative sausage-making process in the trialogues has not concluded.

Exactly whose side is your lawyer on when

There is little doubt that the face of the investment fund industry has changed significantly over the past two years. The statistics show, however, that whilst the industry has been impacted by the global economic crisis, like virtually every other industry, it has perhaps fared better than most and might well have been kinder to investors (Bernie Madoff-type funds aside)

Captive collateral… are you leaving money on the table?

Due in large part to the financial crisis that has plagued the global banking system, letters of credit (LOCs) continue to be more expensive and harder to find. For those that are wondering “When are LOC fees going to go down?”

Investing in Asia Fund management from a Cayman perspective

We have been investing in Asian equities (excluding Japan) for many years and believe that there are multiple reasons to invest in the region. In this article, I will refer to Asia when discussing the Asia ex Japan region.

Lesson learned…?

During the credit crisis, investment funds utilised a variety of techniques to prevent significant redemptions from causing crystallisation of losses on trades; 

Hedge Funds: Here to stay?

From our vantage point in early 2010, we look back on the roller coaster ride of the past two years and see the tremendous change that our industry has endured. There were the heady days in late 2007 when assets under management (AUM) peaked ...

Leaner and meaner? A Cayman perspective on hedge fund trends

This article considers recent trends in the hedge fund industry, as seen from the Cayman Islands legal perspective, following the upheaval of the recent global economic downturn.

Who your director is doesn’t matter. Until it does.

Reflecting on the recent global financial crisis one can’t help but wonder what lessons have been learned from the experiences of many of the world’s hedge fund participants.

Asset-based lending hedge funds: The alternative’s alternative

Few corners of the credit markets were able to sustain themselves during the financial crisis and emerge strengthened. As a rule, the health of lending institutions and the issuance of debt instruments rose and fell together...

Which way, the stream of time? The 2010 economic and regulatory outlook for US...

If you are a hedge fund manager with ties to the United States, you have a full plate. Never mind the basic challenges of generating positive performance on your portfolios and profitably running your business.

Cayman Islands funds – entering the gateway to capital markets in India

By way of background, the IOSCO Objectives and Principles of Securities Regulation were endorsed by its member regulators of various securities and futures markets in 1998, and generally are viewed by securities regulators as the key international benchmark on sound principles and practices for securities regulation.

An industry in flux

There is no escape from the impact of the global financial crisis and, like the rest of the world, Cayman has started to feel its full force during the past year.

Cayman hedge fund liquidators not welcome in US?

First the US housing market unexpectedly threw the asset-backed investment world into a tailspin. Now, seemingly adding insult to injury, a pair of decisions from a prominent New York federal court have raised quite a fuss by ruling that the Cayman liquidators of two Cayman-registered hedge funds would not be recognised in US bankruptcy courts.

White List, will the Cayman Islands remain a key player in investment funds?...

There has been a great deal of attention focused on the Cayman Islands these past few months, more so than usual. Much of the debate as to what to do about the so called ‘tax havens’ has ranged from the White House, the G8 and the G20 to the Organisation for Economic Co-operation and Development.

The attractiveness of the Cayman Islands to Asian companies

Over recent years, the Cayman Islands has proven itself an increasingly popular jurisdiction of choice for the incorporation of companies owned or operated by parties in Asia, with the following being some of the key reasons for such popularity.

Madoff: Red flags

The US$50b fraud by Bernard Madoff’s investment advisory and broker-dealer firms had an equally outsized list of red flags. Several ways in which Madoff carried out his operations were not only highly unusual but also gave him more discretion over his operations and subjected his activities to less scrutiny than a typical investment adviser or broker-dealer. Notably

Effective risk management is not proprietary: The disclosure paradox

It has long been accepted that risk management is a core competency for generating absolute returns within a hedge fund strategy. Prior to the market downturn, hedge fund managers were able to diffuse investor requests for greater transparency in risk-management practices. However, investors, directors and regulators have been startled by the scope and magnitude of losses resulting from the market downturn and credit crisis, as well as recent breaches of fiduciary trust.

Agricultural commodities: the perfect storm

Paul Michael Jenkins, senior Investment Advisor with Bateman and Company Ltd continues his series of articles focusing on investment trends for the difficult year...