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Insights
CV5 Capital's perspectives on Cayman Fund formation, governance, digital asset operations and investment manager structures. Explore practical considerations for hedge funds, closed-ended venture capital funds and digital asset funds.
FEATURED ARTICLE
cayman fund directors, fund governance, cima corporate governance rule, independent directors, drla, aml rule, weavering, local expertise
Cayman Fund Directors: What CIMA Now Expects of the Board, and Why Local Expertise Matters
What CIMA's 2023 Corporate Governance Rule and Statement of Guidance, the 2026 AML Rule and the Directors Registration and Licensing Act require of Cayman fund directors, what Weavering decided, and why Cayman expertise on the board now matters even though no residency rule applies.
October 2026
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October 2026
Cayman Fund Directors: What CIMA Now Expects of the Board, and Why Local Expertise Matters
What CIMA's 2023 Corporate Governance Rule and Statement of Guidance, the 2026 AML Rule and the Directors Registration and Licensing Act require of Cayman fund directors, what Weavering decided, and why Cayman expertise on the board now matters even though no residency rule applies.
Fund Governance
October 2026
CIMA's Financial Stability Report 2024-2025: What the First Mutual Fund Stress Test and the 2025 Inspection Findings Mean for Cayman Funds
CIMA's Financial Stability Report 2024-2025 includes its first liquidity stress test of about 14,087 mutual funds and sub-funds and shows outsourcing behind about 46% of 2025 operational inspection findings. What the results mean for Cayman fund boards, administrators and SIBA-registered managers.
Regulations
October 2026
CIMA Cybersecurity and Outsourcing Requirements: What Applies to Cayman Funds and Their Managers?
CIMA's cybersecurity rule and outsourcing guidance expressly except regulated mutual funds and private funds, but apply to SIBA-regulated managers and licensed administrators. What applies to whom, and how fund boards oversee service providers, cyber incidents and outsourced functions.
Fund Governance
October 2026
Cayman CRS 2.0 and CARF: What Hedge Funds and Digital Asset Funds Must Prepare for in 2027
The amended CRS and CARF took effect on 1 January 2026; the deadlines that test them fall in 2027. Cayman Principal Point of Contact by 31 January, CRS return and Compliance Form by 30 June, and why investing in crypto does not make a fund a Reporting Crypto-Asset Service Provider.
Regulations
October 2026
CIMA's New Auditor Approval Policy for 2027: Implications for Cayman Hedge Funds
From 1 January 2027 CIMA will approve only audit firms with a Cayman presence that meet its independence, competence and quality management criteria. Existing approved firms are deemed compliant. What boards should verify before appointing an auditor, and what the auditor must report to CIMA.
Regulations
October 2026
Independent AML Audits for Cayman Funds: CIMA's 2026 Requirements Explained
CIMA's AML Rule requires independent audits of every regulated fund's compliance programme, on a risk-based cycle, internal for no more than two consecutive cycles, filed with CIMA. Who qualifies, why the AMLCO cannot audit, and why a service provider's firm-wide audit is not enough.
Regulations
October 2026
CIMA's Tokenised Fund Approval Policy: What Cayman Fund Managers Must Know in 2026
CIMA's Regulatory Policy on the Approval of Tokenised Funds, gazetted 7 October 2026, sets the REEFS questionnaire route, six assessment criteria and ongoing notification duties. How new funds and conversions obtain approval, and where fund tokenisation ends and VASP activity begins.
Fund Tokenisation
October 2026
How to launch a convertible arbitrage hedge fund: strategy, returns and Cayman fund structure
Convertible arbitrage returned 12.78% on the HFRX index in 2025 as issuance surged. This guide explains how the strategy works, its return history and risks, the specialist managers active in it, and what a new fund needs: financing, stock borrow, valuation, risk reporting and the Cayman framework.
Hedge Funds
October 2026
Prediction Market Trading Strategy: Building the Edge, Hedging the Book and Launching the Fund
A practical guide to building a prediction market trading strategy for a hedge fund: where the edge comes from, how to size binary positions, how to hedge with and against event contracts, the 2026 CFTC position, and how to launch the fund in Cayman.
Hedge Funds
October 2026
Perpetual Futures on Securities and 24-Hour Markets: What Cayman Fund Boards Should Settle Before the First Contract Trades
An SEC official expects at least four venues to list perpetual futures on securities this quarter, with continuous trading to follow. What valuation, margin and approval steps Cayman fund boards should settle first.
Market Insights
October 2026
SPC vs Standalone Fund in Operational Due Diligence: Why Legal Structure Is Not a Risk Rating
Cayman SPCs are often rated higher risk than standalone funds in operational due diligence. This response sets out what Part 14 of the Companies Act and CIMA's valuation and governance measures actually provide, which SPC risks are genuine, and a structure-neutral ODD test.
Fund Governance
October 2026
Hedge Fund Performance Metrics: How Allocators Measure Sharpe, Drawdown and Unsmoothed Risk
The metrics allocators compute from a hedge fund's monthly returns, worked on 98 years of US equity and Treasury data: Sharpe and Sortino ratios, drawdown and recovery, serial correlation and unsmoothing, minimum track record length, and the SEC marketing rule on net and gross performance.
Hedge Funds
October 2026
Tokenised Money Market Funds as Collateral: Why Faster Transfer Is Not Faster Cash
In fifteen days CFTC staff, ISDA and ESMA each addressed tokenised money market funds as collateral. This analysis explains what each permits, why tokenisation moves the redemption rather than removing it, who funds a CCP in a default, and what fund sponsors must design at launch.
Fund Tokenisation
October 2026
The Efficient Frontier Explained: 98 Years of Returns and What Hedge Fund Managers Should Take From It
A worked rebuild of the efficient frontier on 98 years of US equity, Treasury and gold returns. It tests how stable the inputs are, why hedge fund returns distort them, how allocators decide whether a new fund improves their portfolio, and what the SEC marketing rule requires.
Hedge Funds
October 2026
Conflicts of Interest in Fund Management: Policy, Disclosure and Board Oversight
A fund manager sits on both sides of several recurring transactions. This framework maps the eight conflicts allocators test most, what a conflicts policy and register contain, the CIMA disclosure rules for offering documents and valuation, and the oversight the fund board should evidence.
Fund Governance
October 2026
The US Filings Calendar for a Cayman Fund Manager: 13F, 13D and 13G, Form PF, CFTC and Form D
One calendar for a Cayman fund manager's US filings: Form 13F within 45 days of quarter end, Schedule 13D in five business days, Form D in 15 calendar days, Form PF for registered advisers only, and the CFTC Rule 4.13(a)(3) affirmation within 60 days of year end. Every deadline sourced to the governing rule.
Regulations
October 2026
Digital Asset Treasury Company or Cayman Fund: Structure, Governance and Investor Access Compared
A digital asset treasury company offers public equity exposure at a market price; a Cayman fund deals at NAV with redemption rights. This guide compares access, premium and discount risk, issuance and dilution, governance, custody, audit and what each structure does in a drawdown.
Crypto Funds
October 2026
Cayman vs Jersey and Guernsey for Hedge Funds: Regimes, Costs, Speed and Investor Base
A primary-source comparison of the Cayman Islands, Jersey and Guernsey as hedge fund domiciles: the Jersey Private Fund, Guernsey PIF Rules 2025 and Cayman registered funds, compared on speed, investor eligibility, local substance, audit, EU marketing and allocator familiarity.
Cayman Fund Formation
October 2026
Incubator Funds: BVI Caps, Cayman Routes and Building a Hedge Fund Track Record
The BVI incubator fund takes 20 investors and US$20 million for two years, with no mandatory administrator or auditor. This guide sets out the caps and conversion rules from the regulations, what the route does to track record credibility, and the Cayman alternatives for the same manager.
Hedge Funds
October 2026
Regulatory Hosting or Your Own Licence: The Manager Decision Before a Cayman Fund Launch
Regulatory hosting, your own authorisation or a Cayman registered person: three answers to who the Cayman fund appoints as investment manager. This guide covers the appointed representative regime, PS22/11, allocator and ODD questions, the economics in structure and the trigger points for moving to your own licence.
Cayman Fund Formation
October 2026
German Asset Managers Launching a Cayman Hedge Fund: BaFin Licensing, the KAGB and Distribution
How a German asset manager launches a Cayman hedge fund: KAGB authorisation or registration and the EUR 100 million threshold, the WpIG position for delegated portfolio management, marketing to German professional and semi-professional investors, and the Cayman registration and launch sequencing.
Cayman Fund Formation
October 2026
How to Launch a Staking Yield Fund: Validators, Lock-Ups, Slashing and NAV
A launch guide for staking yield funds: choosing between fund-run validators, delegated staking and liquid staking tokens, controlling withdrawal keys, sizing redemption terms to unbonding queues, recognising rewards in NAV, and the VASP Act and SEC staff statement analysis.
Crypto Funds
October 2026
How to Launch an AI Hedge Fund: Model Governance, Data Rights, Disclosure and Structure
An AI strategy changes five things about a hedge fund launch: the accuracy of AI claims after the SEC's 2024 AI-washing actions, governance of retrained models, training data rights, model ownership on open weights or vendor platforms, and compute cost allocation.
Hedge Funds
October 2026
How to Launch a Power and Electricity Trading Hedge Fund
How to launch a power and electricity trading hedge fund: day-ahead and real-time markets, financial transmission rights, FERC and CFTC jurisdiction, margin buffers sized for price spikes, curve valuation under the CIMA Rule, and dealing terms matched to liquidity.
Hedge Funds
October 2026
After CLARITY: US Crypto Market Structure Is Now Being Written by Agencies, and Fund Boards Should Plan for It
The Senate failed to pass the CLARITY Act, so the CFTC and SEC are building US crypto market structure through agency action. This analysis sets out what changed, what remains unresolved on spot markets and insolvency, and the governance steps fund boards and Cayman managers should take.
Regulations
October 2026
How to Launch a Crypto Lending Fund: Structure, Collateral Control, Counterparties and Valuation
A crypto lending fund is defined by its collateral and its liquidity mismatch. This guide covers mutual fund versus private fund structure, loan documentation, collateral custody and rehypothecation, LTV and 24-hour liquidation, on-chain lending risk, loan impairment and the VASP Act.
Crypto Funds
October 2026
How to Launch a Crypto Arbitrage Fund: CEX and DEX Venues, Custody, Collateral and NAV Architecture
A crypto arbitrage fund holds assets at many venues at once, so launching one is a control and valuation problem. This guide covers venue onboarding, trade-only permissions, custody models, stablecoin and DEX risk, NAV pricing across venues, ODD evidence and the Cayman regulatory position.
Crypto Funds
October 2026
How to Launch an Emerging Markets Hedge Fund: Market Access, Local Custody, FX and Structure
An emerging markets fund must be admitted to each local market in its own name before it trades. This guide maps India FPI registration, China QFII, Stock Connect and Bond Connect, Brazil's 2025 regime and Korea's LEI route, then covers custody, FX, frozen markets and dealing terms.
Hedge Funds
October 2026
How to Launch a Long/Short Equity Hedge Fund: Prime Brokerage, Short Selling Rules, Structure and Terms
A long/short equity fund is built around its short book. This guide covers prime brokerage and margin terms, borrow and recall risk, physical versus synthetic shorts, EU, UK and US short disclosure, 13F and 13D thresholds, exposure limits, MNPI controls and dealing terms.
Hedge Funds
October 2026
How to Launch a Crypto Market Making Fund: Structure, Inventory, Token Agreements and Governance
A crypto market making fund carries more venue, valuation and conduct risk than most digital asset strategies. This guide covers fund-owned venue accounts, issuer token loan and option agreements, the Cayman VASP question, NAV for thin tokens, exchange rebates and board surveillance.
Crypto Funds
October 2026
How to Launch a Relative Value Hedge Fund: Financing, Leverage and Liquidity for Arbitrage Strategies
An arbitrage fund's operating risk is financing, not trading. This guide covers the repo, borrow, margin and ISDA stack a relative value fund needs, how haircuts move in stress, SEC Treasury clearing, CIMA leverage disclosure, liquidity terms and valuation.
Hedge Funds
October 2026
How to Launch a Commodities Hedge Fund: Structure, Physical Exposure, Valuation and Regulation
A commodities fund is defined by how it holds exposure. This guide covers futures, OTC and physical instruments, holding physical directly or through a subsidiary, delivery avoidance, CIMA valuation requirements, SIBA and CFTC analysis, margin buffers and dealing terms.
Hedge Funds
October 2026
Leaving a Multi-Manager Platform to Launch Your Own Hedge Fund: The Portfolio Manager's Launch Sequence
A practical launch sequence for portfolio managers leaving a multi-manager platform: using the notice period and garden leave, presenting a platform track record, replacing central risk, financing and compliance, launching at smaller AUM, and choosing the fund and manager entity.
Hedge Funds
October 2026
How to Launch an Algorithmic Trading Fund: Structure, Execution Infrastructure and Controls
Turning an algorithmic execution stack into a fund changes who owns the accounts, keys, limits and code. This guide covers API key control, pre-trade limits and kill switches, change control, hosting, IP separation, NAV at high trade counts, track records, SIBA and the CFTC.
Hedge Funds
October 2026
Setting Up a Regulated Offshore Investment Adviser for a DeFi Hedge Fund
A DeFi team without a regulated adviser needs an entity to manage a fund or separately managed accounts. This guide covers SIBA status for onchain instruments, VASP custody when the adviser holds keys, wallet and protocol governance, onchain records and economic substance in Cayman.
Crypto Funds
October 2026
Reverse Solicitation and Marketing a Cayman Fund Across Borders
Reverse solicitation lets an investor approach a manager on its own initiative, but regulators read it narrowly. This guide covers the EU and UK rules, what counts as marketing in practice, how to build the evidence file, and why repeat enquiries and existing investors are treated differently.
Fund Distribution
October 2026
Exempt Reporting Adviser Status for US Managers of a Cayman Fund
A US manager advising only private funds below US$150 million can rely on section 203(m) instead of SEC registration. This guide explains how regulatory AUM is measured, what an exempt reporting adviser must still file and follow, the state layer, and how registration works.
Regulations
October 2026
How to Launch an FX Hedge Fund: Structure, Prime Brokerage and Regulation
An FX fund depends on credit, settlement and valuation that a bank desk once provided. This guide covers the FX instrument set, prime brokerage and give-up, losing a credit line, uncleared margin, which FX instruments are swaps under US law, share class currency, NAV fixes and liquidity terms.
Hedge Funds
October 2026
Leaving a Fund Platform: Moving a Segregated Portfolio to a Standalone Fund
Lock-in is the main objection to launching on a fund platform. This guide explains when a standalone fund becomes justified, how a segregated portfolio's assets and investors move into a new fund, how fees and high-water marks carry across, and what to check in platform documents before joining.
Cayman Fund Formation
October 2026
How to Move an Existing Hedge Fund onto a Cayman Platform
Moving a live hedge fund onto a Cayman platform is a transaction, not a re-registration. This guide sets out the available transfer routes, what the old fund's documents decide, which assets move in specie, how fees and high-water marks carry across, and how to close the old fund.
Hedge Funds
October 2026
Hedge Fund Seed Capital: Launch With a Seeder or Without One?
Seed capital is a financing decision about the management company, not a requirement for launching a fund. This article sets out the break-even arithmetic, models what a seed deal costs before and after the seed capital redeems, and compares the alternatives to a seeder.
Hedge Funds
October 2026
Tokenised Collateral Meets Prime Brokerage: What This Week Means for Hedge Fund Managers
Ripple Prime's expanded Brevan Howard agreement, ISDA's paper on tokenised money market funds as collateral and BlackRock's remarks point to collateral mobility as the practical entry point for tokenisation. What managers, boards and Cayman funds should do now.
Fund Operations
October 2026
The Hidden Risk in AI Infrastructure: What CoreWeave Shows Fund Investors
The most insidious AI risk is not a model failure but a financing chain. Using CoreWeave's own filings, this article shows how circular supplier relationships, GPU-backed debt, backlog quality and leverage can reach fund portfolios through credit, index weights and counterparties, and what boards and allocators should ask.
Market Insights
October 2026
Launching a Tokenised Fund or Adding a Tokenised Share Class in Cayman
Cayman's 2026 framework lets managers launch a tokenised fund or add a tokenised share class to an existing fund. This article compares the two routes on regulatory requirements, operations and investor implications, and explains why one tokenised class makes the whole fund a tokenised fund.
Fund Tokenisation
October 2026
From SMA Manager to Hedge Fund Manager: What Changes When You Launch a Fund
In a fund, the manager keeps investment discretion but loses unilateral control over cash, valuation, fees, terms and records. This article explains what changes for a former SMA manager, why that protects investors, where the gap is widest in crypto managed accounts, and six mindset shifts for the transition.
Fund Governance
October 2026
Moving an Existing Hedge Fund Onto a Cayman Fund Platform
A sub-scale standalone fund, or a fund in another jurisdiction, cannot merge or redomicile into a platform segregated portfolio. This article explains the route that works: a new segregated portfolio, an in-kind or cash transfer of assets and investors, and an orderly close of the old fund timed around CIMA year end.
Hedge Funds
October 2026
How to Choose a Cayman Fund Platform: The Due Diligence Questions That Matter
Price and speed are the easy comparisons. This guide sets out the questions on regulatory standing, cross-liability, board oversight, AML, service providers, fees, control and exit that allocators will later ask, and the documents a manager should see before choosing a platform.
Cayman Fund Formation
October 2026
CIMA AML Desk-Based Reviews: What Cayman Funds Need to Produce
CIMA has said it will begin AML desk-based reviews of regulated entities, including funds, from October 2026. This article separates what is confirmed from what is reported, and sets out the risk assessment, methodology, programme evidence and governance record a fund should be able to send within days.
Regulations
October 2026
The SEC's Crypto Custody Proposal: What It Changes for Fund Managers, and What It Does Not
The SEC's 1 October 2026 proposal on crypto custody for registered advisers and regulated funds is a proposal, not a rule. This analysis sets out what it would change, what it would not, and the custody governance questions boards and Cayman managers should test now.
Regulations
October 2026
Institutional-Grade Operations for an Emerging Hedge Fund Manager
Why emerging hedge fund managers need institutional-grade operations from day one, what institutional standards actually require in 2026, and how a regulated fund platform makes that level of infrastructure commercially viable at a small fund.
Fund Operations
October 2026
Speed to Market on a Cayman Fund Platform
How a regulated Cayman fund platform compresses the hedge fund launch timeline from four to nine months to three to four weeks: what causes delays in the standalone route, where a platform saves time, and what still needs to be done regardless of route.
Cayman Fund Formation
October 2026
The True Cost of Running a Cayman Fund: Standalone vs Platform
A detailed cost comparison of running a Cayman hedge fund on a standalone basis versus through a regulated fund platform, with annual expense category breakdowns, assumptions and the AUM thresholds at which each route's economics change.
Cayman Fund Formation
October 2026
What You Get From Day One With a Cayman Fund Platform
A practical walkthrough of what a regulated Cayman fund platform provides on the day a new segregated portfolio is operational (governance, compliance, operations and investor readiness) and why it matters for a manager's first allocator conversations.
Cayman Fund Formation
September 2026
Digital-Asset Fund Structuring and Tokenisation: What Changes and What Does Not
Tokenisation improves transferability but does not remove the legal architecture of a fund. This article distinguishes tokenised fund interests from crypto subscriptions and digital asset investment, and sets out the governance, register and custody design each requires.
Fund Tokenisation
September 2026
AI, Systematic Trading and Model Governance: The Standard the Board Should Apply
Calling a strategy AI-driven does not move accountability from the manager to the model. This article sets out the practical governance framework for AI-enabled funds: model ownership, testing, change control, human override, surveillance and disclosure.
Fund Governance
September 2026
Leverage, Margin and Prime-Brokerage Protections: The Governance Framework Before Deployment
Most hedge fund failures are liquidity and control failures after margin, concentration and counterparty exposure compound at speed. This article sets out the governance framework a fund needs before deploying leverage: investment restrictions, margin authority, collateral and board escalation.
Hedge Funds
September 2026
Private-Market Valuation and the Hedge Fund Liquidity Mismatch
A quarterly NAV does not make an illiquid portfolio liquid. This article sets out how valuation policy, side pockets, gates, suspension rights and in-kind distribution provisions must align with a fund's actual portfolio liquidity before capital is accepted.
Fund Operations
September 2026
Investor Due Diligence and Negotiated Fund Terms: Side Letters, MFN and Gates
Institutional due diligence now routinely produces a side letter negotiation after signing. This article sets out which requests on liquidity, MFN, fees, transparency and key-person terms a fund's governance can accommodate, and which create unworkable operational inconsistency.
Fund Governance
September 2026
Cayman Fund Fees Changed in 2026: What Managers Need to Rebudget
CIMA revised its annual fund and sub-fund fees effective 1 January 2026. This article sets out exactly what changed and links it to the broader launch-and-operating budget managers should be working from.
Regulations
September 2026
Fund Wind-Down in Cayman: How to Close a Fund Without Leaving Regulatory or Investor Liabilities Behind
Closing a Cayman fund cleanly requires more than a final redemption notice. This article sets out final NAV, reserves, redemption mechanics, the final audit position, CIMA de-registration, bank and exchange account closure, and records retention.
Fund Operations
September 2026
Cayman Fund Annual Reporting: Audit, FAR and Governance Calendar for Mutual and Private Funds
CIMA requires audited financial statements and the Fund Annual Return within six months of a fund's financial year-end. This article sets out an operational calendar across audit, FAR, CIMA fee payment and governance deliverables, and who owns each one.
Regulations
September 2026
The True Cost of Operating a Cayman Fund: Why Formation Fees Are the Wrong Starting Point
Formation fees are a one-time cost and the smallest number in a fund's first-year budget. This article walks through the recurring governance, audit, regulatory reporting, administration and AML costs a manager should actually be budgeting against, and how a platform structure changes the economics.
Fund Operations
September 2026
Cayman Fund AML and Sanctions Rules: The Board-Level Actions Required Now
CIMA's Rule on an Effective Compliance Programme for AML/CFT/PF and the Rule on Compliance with Financial Sanctions took effect on 18 September 2026. This article sets out the specific actions a fund's board should be taking now that both rules are in force.
Regulations
September 2026
Accepting USDC, USDT, BTC and ETH Subscriptions: A Fund Operator's Control Framework
Accepting subscriptions in digital assets shifts risk that a cash subscription does not carry: wallet provenance, venue approval, sanctions screening, valuation timing and stablecoin exposure. This article sets out the control framework a fund operator should have before accepting the first token.
Crypto Funds
September 2026
Launching a Digital Asset Fund: Designing Exchange, Custody and Withdrawal Controls That Stand Up to ODD
Exchange access, custody arrangements and withdrawal mechanics are where digital asset fund operational due diligence is won or lost. This article sets out fund-level account structure, trading-only manager access, maker-checker controls, whitelist governance and administrator visibility.
Crypto Funds
September 2026
The SPC Decision: When Separate Strategies Need Separate Segregated Portfolios
Share classes and segregated portfolios both let a manager run more than one strategy under one umbrella, but they allocate risk very differently. This article sets out a decision framework across strategy, asset, investor-liquidity, liability and service-provider separation.
Cayman Fund Formation
September 2026
Cayman Fund Launch 2027: The Operating Model Institutional Investors Now Expect
Formation is no longer the bar institutional allocators measure a launch against. This article sets out the operating model, governance, valuation, custody, AML, cyber resilience and counterparty controls, that a Cayman fund is now expected to demonstrate before capital is committed.
Fund Governance
September 2026
Tokenised Funds in Cayman: The New 2026 Framework for Digital Equity and Investment Tokens
The Mutual Funds (Amendment) Act 2026 and Private Funds (Amendment) Act 2026 give Cayman tokenised funds a dedicated statutory footing. This article sets out what changed and what it means in practice for operators, transfer controls, token-holder records and offering-document disclosure.
Fund Tokenisation
September 2026
How Hedge Funds Are Using Agentic AI
Agentic AI is moving from experimentation into daily use across hedge fund research, monitoring and reporting. This article sets out where it adds genuine value, where it creates risk, and how platform governance supports safe adoption from launch.
Hedge Funds
September 2026
SEC Transfer Agent Rules and Tokenised Funds: Who Maintains the Register?
A tokenised fund can keep its register of members on a distributed ledger or mirror it off-chain. Both work; ambiguity does not. This analysis sets out the Cayman statutory position, the SEC transfer agent proposal of September 2026, and what a board must be able to evidence.
Fund Tokenisation
September 2026
The Personal Account Dealing Policy Hedge Fund Managers Need Before the First Allocation
Allocators request the personal account dealing policy in the first diligence pack. This guide sets out the Rule 204A-1 and FCA COBS 11.7 reference frameworks, who is covered, the reporting calendar, the digital asset complications and how a two to five person manager evidences compliance.
Fund Governance
September 2026
A DIFC or ADGM Licensed Manager Running a Cayman Hedge Fund
A DFSA or FSRA licensed manager can run a Cayman hedge fund, but the permission, the fund's status in the home centre and the marketing route to UAE investors are three separate questions. This article sets out each with the rule references, including the 2026 Capital Market Authority regime onshore.
Cayman Fund Formation
September 2026
The Cayman Fund Year End Checklist: Preparing a Hedge Fund for 31 December
A fourth-quarter checklist for a Cayman hedge fund with a 31 December year end. Auditor engagement and evidence planning, valuation of hard-to-value lines, performance fee crystallisation, register confirmations, the 15 January fee run and the year-end board pack, in the order they need to happen.
Regulations
September 2026
Anti-Dilution Levies and Swing Pricing in Hedge Funds: Who Pays the Cost of Investor Flows
Dealing costs fall on the investors who stay unless the fund charges them to the investor who dealt. This guide compares the anti-dilution levy, swing pricing and dual pricing, shows a worked swing example, and sets out what is proportionate for a monthly-dealt Cayman hedge fund.
Fund Operations
September 2026
Australian Managers Launching Cayman Hedge Funds
An Australian fund manager Cayman fund keeps the AFSL and compliance framework in Australia and puts the vehicle where Asian and US allocators subscribe. This guide sets out section 911A, the wholesale client tests, the 2026 FFSP legislation and tax residence at a structural level.
Cayman Fund Formation
September 2026
Hedged Share Classes in Hedge Funds: Currency Hedging Mechanics, Cost and Who Bears the Basis
How a GBP, EUR, CHF or JPY class is hedged against a USD base: forward sizing, the roll cycle, the 95 to 105 per cent reference band, collateral and cash drag, allocation of carry and losses, spill-over and what the offering document must disclose.
Fund Operations
September 2026
In-Kind Redemptions and In-Specie Transfers: When a Hedge Fund Pays Out in Securities Rather Than Cash
When a hedge fund pays a redeeming investor in securities or tokens rather than cash. The constitutional authority, the fairness test to remaining investors, valuation at the dealing day NAV, the board record, settlement by asset type and the liquidating vehicle alternative.
Fund Operations
September 2026
The CIMA AML Rule Is in Force: The First 90 Days and What a CIMA AML Inspection Will Ask
CIMA's AML Rule took effect on 18 September 2026. This article sets out what an inspection will ask a Cayman fund to produce, where small managers most often fall short, how the administrative fines framework operates, and a 90-day remediation sequence for boards.
Regulations
September 2026
The Hedge Fund Business Continuity Plan: What Allocators Test at Sub-US$100m
A proportionate business continuity and disaster recovery plan for a two-to-five person manager: trading authority succession, recovery objectives, provider plans, the fund board's minutes and the testing evidence an ODD team expects, with regulator expectations separated into rule, guidance and practice.
Fund Operations
September 2026
Soft Dollars, Commission Sharing and Research Payments: What a Cayman Hedge Fund Can Pay For
Research paid for through commissions is a fund expense that never appears in the expense ratio. This guide explains the Section 28(e) safe harbour, commission sharing arrangements, the UK and EU research payment routes, and what a Cayman fund's offering document and board must do about it.
Fund Governance
September 2026
SEC Marketing Rule Private Fund Guide: Performance, Hypotheticals and Testimonials for a Cayman Vehicle
Rule 206(4)-1 follows the registered adviser, not the fund's domicile. This guide sets out how a US adviser to a Cayman vehicle must present gross and net returns, extracts, backtests, targets and predecessor records, and what a paid placement agent requires.
Regulations
September 2026
The NAV Error Policy Hedge Fund Boards Should Approve: Thresholds, Compensation and Restatements
NAV errors are certain over the life of a fund; what matters is whether the policy decided the hard questions in advance. CV5 sets out what the CIMA Rule requires, the thresholds seen in practice and in two European regimes, the compensation matrix and what the offering document should say.
Fund Operations
September 2026
Hedge Fund Best Execution Policy: The Duty, the Evidence and What ODD Teams Test
Best execution outside MiFID is a fiduciary and contractual standard, not a reporting regime. This guide sets out the SEC, FCA and Cayman sources of the duty, the execution factors by asset class, proportionate TCA, and the evidence file ODD teams ask to see.
Fund Operations
September 2026
Hedge Fund Trade Error Policy: Who Bears the Loss and What Allocators Expect to See
One of the first documents an ODD team requests. How a trade error policy defines errors against investment decisions, why the manager bears the loss by default, what netting is defensible, and what the log, the board and the administrator should see.
Fund Governance
September 2026
Sanctions Screening for Cayman Funds: What CIMA's Sanctions Rule Requires From 18 September 2026
CIMA's Sanctions Rule has the force of law from 18 September 2026. This article works through its paragraphs from the fund's side: the lists in scope, who must be screened and when, freezing and FRA reporting, and how the work divides between fund, administrator and manager.
Regulations
September 2026
Marketing a Cayman Fund to EU Investors Under AIFMD Article 42: Country by Country
A member-state map for marketing a Cayman fund to EU professional investors under AIFMD Article 42 after AIFMD II. Where notification works, where the route is closed, what each regulator publishes, and how pre-marketing and reverse solicitation actually operate.
Fund Distribution
September 2026
The ERISA 25 Percent Test Hedge Fund Managers Must Run Before Taking US Pension Money
How the ERISA plan asset rules apply to a Cayman hedge fund or digital asset fund. Who counts as a benefit plan investor, how the 25 percent test is measured class by class, what a breach does to the manager, and the subscription and register controls to build in from day one.
Fund Distribution
September 2026
Cayman Fund Vehicle Types: Choosing Between an Exempted Company, SPC, ELP, LLC and Unit Trust
A decision matrix for the five Cayman fund vehicle types: exempted company, segregated portfolio company, exempted limited partnership, LLC and unit trust. Covers regime, investor tax profile, governing body, ring-fencing, cost drivers and when a platform segregated portfolio or a standalone vehicle is right.
Cayman Fund Formation
September 2026
The Cayman CRS Compliance Form: What to Check Before 15 September 2026
The Cayman CRS Compliance Form for 2025 is due to the DITC by 15 September 2026 and is separate from the July return. This guide covers who must file, what the five sections ask, nil and terminated funds, penalties, and the move to a single 30 June deadline from 2027.
Regulations
September 2026
CIMA Fee Increase 2026: What It Did to Umbrella Fund and Segregated Portfolio Economics
The 2026 CIMA fee revision raised the sub-fund increment from CI$300 to CI$750, yet the annual gap between a segregated portfolio and a standalone fund did not move. Verified figures, the repealed FAR fee, and an umbrella model at one, three, five and ten portfolios.
Cayman Fund Formation
September 2026
The Cayman Fund Tax Undertaking Explained: What Tax Neutrality Does and Does Not Do
What the Cayman fund tax undertaking actually promises, for how long, and for which vehicle. Why tax neutral is not tax free: investor home regimes, withholding at source, FATCA, CRS and economic substance all continue to apply, and each shapes the structuring decisions a manager takes at launch.
Regulations
September 2026
The Cayman Limited Investor Fund: Section 4(4) Registration With No Minimum Subscription
The section 4(4) limited investor fund is the one Cayman registration route with no minimum subscription. This guide sets out the fifteen-investor test, the majority appointment condition, CIMA fees, the audit and FAR obligations, and what happens at the sixteenth investor.
Cayman Fund Formation
September 2026
Cayman's AML rules become enforceable on 18 September: what fund boards must do now
CIMA has converted the core of its Guidance Notes into binding rules taking effect on 18 September 2026. For CIMA registered funds, the compliance programme becomes a board-owned, auditable and filed obligation. This analysis sets out what boards should document before the date.
Regulations
August 2026
Canadian Managers Launching Cayman Hedge Funds
Canadian emerging and spin-out managers can reach an institutionally credible offshore fund through a Cayman segregated portfolio. This article separates the fund question from the manager question, sets out what Canadian registration turns on, and explains what an offshore management entity cannot fix.
Cayman Fund Formation
August 2026
How Long the First Institutional Allocation Actually Takes
Published accounts of institutional allocation describe what allocators test, never how long any of it takes. This article sets out the six gated stages from the manager side, what opens each one, what stalls it, and why processes that reach late stage still do not fund.
Fund Governance
August 2026
Making a Crypto Fund Track Record Fundable
A profitable trading history held as exchange exports is not yet a track record. This article sets out what the raw record lacks, how venue data becomes an administrator produced series, what an audit cannot reach, and how the unverified period must be disclosed.
Fund Governance
August 2026
Running a Regulation S Offering for a Cayman Digital Asset Fund
Regulation S conditions the conduct of the whole offering, not admission of each investor. This article states both general conditions of the issuer safe harbour in full and maps a digital asset manager's public activity against them.
Regulations
August 2026
Advisers Act and a Crypto Fund: When a Digital Asset Manager Becomes an Investment Adviser
A digital asset manager needs the threshold test, not a policy narrative. This analysis works upward from the portfolio: which position types engage the securities element of the adviser definition, what each exemption requires in full, and what attaches once a manager registers or reports.
Regulations
August 2026
CFTC Registration for a Cayman Crypto Fund: Commodity Pool Status by Instrument Set
A Cayman digital asset fund enters the CFTC perimeter because of what it holds, not where it is formed. This guide works through spot, offshore perpetual futures, listed futures and options, swaps and leveraged retail transactions, and states each exemption with its full conditions.
Regulations
August 2026
Is a Spot Crypto Fund an Investment Company Under the 1940 Act?
Managers are asked which 1940 Act exclusion their fund relies on before anyone establishes whether the statute reaches the vehicle at all. This analysis works the section 3(a)(1) definition against a digital asset portfolio and states every condition of the 3(c)(1) and 3(c)(7) exclusions.
Regulations
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