Guide

Investor protection in Cayman hedge funds The 'just and equitable' winding up jurisdiction

It is well known that a high proportion of hedge funds are incorporated in the Cayman Islands, with 10,291 regulated funds based in Cayman as at September 2008 (Cayman Islands Monetary Authority Statistics). As the economic environment has deteriorated since August 2007, there has been much speculation about the impact on hedge funds of the so-called 'credit crunch' and the large falls in the value of securities and other assets. Some funds have already failed and observers have suggested that many more may fail.