Article: Domiciling Investment Funds In The British Virgin Islands And Cayman Islands.

The "sub-prime" crisis and the volatility of international markets in 2008 has reinforced the utility of "open-ended" funds as a refuge for investors with a clear increase in the number of 'special opportunities' and 'distressed opportunities' funds being launched. Open-ended funds such as 'hedge funds' enable the collective pool of funds to be diversely invested in multiple markets, thus spreading the total risk amongst the investment pool. Open-ended funds give investors the right to demand a redemption of their interest in a fund (i.e. an investor's shares), thereby appealing to investors who require liquidity in an investment. This compares with "closed-ended" funds ...

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