Although a relatively small dot on the global hedge fund map, Switzerland is currently vying to become a premier location for hedge fund managers, and last week, the Swiss government paired up with some of the country's financial trade groups to announce it was set to alter the country's complicated tax laws by offering hedge fund managers exclusive tax breaks in a bid to encourage more hedge funds and private equity groups to settle in Switzerland before opting for other locations, such as London or New York.

A further announcement from the country's Finance Department noted that the country's Federal Tax Administration is to clarify the tax-related problems linked to performance fee and carried interest, which will therefore provide the operators concerned with the legal certainty they require for tax planning, in addition to making Switzerland a more desirable investment option.

The proposal has yet to gain concrete approval, but does not require new legislation in order to be implemented and could generate thousands of jobs and boost the economy if it is accepted.