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.
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.
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.
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?”
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 ...