Luxembourg lays down the law but listens to the launch pad

special report: luxembourg

Luxembourg's main appeal as a hedge fund domicile is the increasing popularity of regulated jurisdictions over the traditional offshore location. This is being driven by the increase of institutional money coming into the hedge fund industry, not just in Europe but globally, says Michael Ferguson, a consultant at Ernst & Young in Luxembourg.

Dutch institutions, for example, are, in many cases, making allocations to hedge funds of 5%-10%. Trustees of Dutch pension funds want peace of mind, Fe