Cayman hedge fund exit predicted to accelerate

(FT.com): The hedge fund industry’s ongoing drift away from the Cayman Islands to onshore locations in Europe could be accelerated by impending European legislation and a recent court case in the Caribbean territory, industry figures believe. The proportion of hedge funds domiciled in the Cayman Islands has slipped from 40.1 per cent to 37.3 per cent since the end of 2008, with Ireland and Luxembourg seeing their share jump by 60 per cent to 7.3 per cent, according to figures from Hedge Fund Research. The impending passage of a controversial EU directive placing stringent restrictions on the marketing of funds domiciled outside the EU to European investors is likely to accelerate this trend.