Private fund performance after the Dodd-Frank Act

The American private fund industry is a significant representative of Wall Street’s interests and regulating hedge funds was a politically sensitive undertaking since the inception of the industry 

 

The Financial Services Legislative Committee

Over the years, in fact for the whole period leading up to Cayman achieving its position as a leading offshore jurisdiction for institutional clients, one of our strongest selling points was that our private and public sectors worked together to draft bespoke legislation to meet the ever-changing needs of the financial market.

Cayman funds stand strong in new era of governance

With the global hedge fund industry transitioning into a new era of heightened regulation and stricter fund governance, the Cayman Islands are extremely well placed to respond to the associated challenges.

 

 

Investing 101 – Setting the parameters

I recently participated in an investment panel as part of the 2011 Cayman Captive Forum. The intent was to give the owners of captive insurance companies an insight into the factors they ought to be considering in establishing and monitoring an investment programme for their company.

Innovation and change in the director services industry

Legislative changes introduced director registration or licensing requirements and new regulations. In addition, law firms started to spin off their administration divisions and private equity and other buyers entered the market.

 

Drawing a line in the sand over the right to information

Concerns in the U.S. and Europe over security leaks and the debate about access to public versus private information runs in some ways parallel to the discussion regarding the information investors prefer and require to make informed decisions about their investments in Cayman Islands funds.

 

The evolving role of hedge funds in institutional investor portfolios

Institutional investors face an almost unprecedented set of challenges. The post-crisis period has been one of slow economic growth, low or even negative real interest rates, volatile markets and increasing geo-political pressures.   

 

Sticking it to the family, Swedish style

Based on a “slam dunk” set of facts, the Cayman Islands Grand Court recently delivered a very strong message to directors of Cayman Islands companies – at your peril do you deliberately ignore your fundamental legal obligations.

Conflicts of interest between investment managers and their investors:

All investment management firms need to pay very careful attention to a recent paper issued by the UK’s Financial Services Authority (FSA) concerning the management of conflicts of interest between asset management firms and their customers.  

 

Be careful what you wish for…

The recent decision of the Financial Services Division of the Grand Court of the Cayman Islands in the matter of the Weavering Macro Fixed Income Fund Limited was met with a wall of noise from the industry in the Cayman Islands. Although that of itself was no surprise, the particular tone of that noise was surprising to me at least.

Unit trusts: Forget-me-not

Read our article in the Cayman Financial Review Magazine, eversion The structuring of investment funds as unit trusts has been and continues to be the...

The trend “investment fund” within the trend “family office”

While family office structures seemed to be restricted for a long time to the classic single family office and only a handful of families in the US and in a number of European countries, today’s family office market is not only experiencing a “boom” in newly-established structures, but is also more diverse than ever before.

Fund governance: The trend toward split boards

This industry trend is being driven by investors who consider that the challenges of such a model are far outweighed by the benefits provided to them by a board that will be more effective in all situations. 

 

Into the spotlight: Independent fund directors

Independent directors and non executive directors have come into the spotlight in recent years following the well reported failings of firms such as Weavering Capital.  In earlier examples, Beacon Hill Asset Management and Bear Stearns High Grade Structured Credit’s offshore fund directors were singled out for criticism for failing in their duties. 

‘Can do’ approach heralds a settlement for Madoff investors

The recently court appointed principal liquidators of a Cayman Islands registered Madoff feeder fund, Herald Fund SPC (In Official Liquidation), immediately began a ‘hearts and minds’ campaign aimed at establishing trust with the trustee.   

 

Alternative investments: Issues with valuing the invaluable

The enforcement division of the SEC’s Asset Management Unit has recently brought a number of complaints against various hedge funds and their investment managers.  

 

Taking the softly softly approach

During the course of the fund industry’s slow yet sure recovery from the fallout of the global credit crisis, it has become increasingly apparent that prudently structured investment funds of all types should strongly consider including provisions in their constitutional documentation contemplating a “soft wind down”.

Private equity investment into Africa: The Cayman and Mauritius route

The invitation in December 2010 by China to South Africa to join the BRIC group of major emerging economies, to create the ‘BRICS’ acronym, has heralded a new dawn, not only for the nation of South Africa, but arguably for the continent of Africa as a whole.

Does location matter?

The world has become global and this not only on business and private sides, but also family offices are seeking increasingly to get the most out of this international playing field at their hand.   

 

How to address increased compliance cost for private funds

In the long run, private fund advisers may decide to forego the services of third party service providers and device strategies that allow them to fulfill their reporting obligations under the Dodd-Frank Act more effectively, thus lowering compliance costs further.

 

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