Hedge Fund industry outlook 2011

Here we are, another year coming to a close. 2010 has truly been filled with uncertainty, anticipation and drama. Yet without all those elements, the hedge fund industry would not be the industry we know and love.

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.

Naked shorting and market volatility

In the summer of 2010, amidst the European debt crisis, the German Finance Minister Schäuble, when commenting on the financial industries complaints about financial reform, said “if you want to drain a swamp, you don’t ask the frogs for an objective assessment of the situation”.

Investment Funds – how did we get here?

Typically an investor has to give prior notice of their intention to redeem their investment. The period of notice may vary depending on the nature of the funTypically an investor has to give prior notice of their intention to redeem their investment. The period of notice may vary depending on the nature of the fund and the assets that it has invested in.d and the assets that it has invested in. The redemption process is one of the major challenges currently facing...

Lesson learned…?

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

The business of running a hedge fund:

2010 was a transformative year for the hedge fund industry and served as a strong reminder that managing money is not the same as running a business. 

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

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.

The big five hedge fund expenses

Where do hedge funds allocate most of their spending?

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.

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.

Volatility in the rare earth materials

  There are exciting nanotech approaches to many of the high-growth sectors that presently rely on rare earth materials.   

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...

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...

Security token offerings in the Cayman Islands

An increasing number of businesses are concluding that a security token offering (STO) is now the preferred approach to raise funds for their project,...

Madoff: A Riot of Red Flags

Back to story > Madoff: Red Flags Greg N. Gregoriou & François-Serge Lhabitant, Madoff: A Riot of Red Flags (Jan. 2009)available via http://faculty-research.edhec.com/jsp/fiche_document.jsp?CODE=1234770344525&LANGUE=1 Greg Gregoriou and...

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.

The first bubble – or bulb – that burst

Back to story > Investing: The end of traditionTulip mania or tulipomania was a period in Dutch history when contract prices for bulbs of the...

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?”

Why fiction is clouding fact: Efforts taken by offshore centres to tackle financial crime

Sidebar:Onshore's Greatest Hits - Pressure on OFC's Nothing NewIn December 2008, the British newspaper The Observer ran a story that pointed the finger of...
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