Independent Directors In Demand For Cayman Hedge Funds

by Carla Johnson, Investors Offshore.com

07 November 2005

Independent directors are finding themselves increasingly in demand from hedge funds whose growing list of institutional clients require a greater degree of assurance that their investment is protected, a trend particularly prevalent in the Cayman Islands where the majority of the world's hedge funds are domiciled, Reuters reports.

With pension funds, endowments and charities having placed billions of dollars into hedge funds, private investment pools considered by some to be risky and too lightly regulated, many trustees are seeking funds with independent directors to ensure their investments are safe.

“There is a big opportunity for a lot more people with relevant experience to provide directorships to hedge funds these days,” Alan Tooker, a director at A.R.C. Directors Ltd. on Grand Cayman Island, was quoted as observing in the report.

It is believed that around 80% of the world's 8,000 hedge funds are registered with the Cayman Islands Monetary Authority, which requires licenced funds to have two directors.

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