Cayman Islands laws criticized on hedge fund ruling

Cayman Islands laws criticized on hedge fund ruling

(FTAdvisor.com): The decision to strike out court proceedings, launched with the aim of forcing the winding up of a Cayman-based hedge fund, has been criticised by Laven Partners. The firm has said the Cayman Islands Court of Appeal’s decision over Camulos PartnersOffshore Limited represented an imbalance in the law of the Caribbean nation. Jerome Lussan, chief executive of hedge fund consultancy at Laven Partners, said: “Numerous funds were crippled by the effects of the credit crunch and its impact on securities markets.”

“This is largely because many investors lost confidence and wished to redeem their positions. ”Such people are now desperate to contest the unfair decisions of funds to suspend NAVs or not to repay shareholders by suspending or gating redemptions at the last minute,” he said.

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